DALLAS — Just how important is Dallas-based Topgolf to the future of four-decade-old golf brand Callaway?
Enough to take top billing in a corporate name change.
Callaway Golf Co. announced Wednesday that it plans to change its corporate name to Topgolf Callaway Brands Corp. The company said the name change reflects its “dynamic brand portfolio that has unmatched scale and reach across the full modern golf and active lifestyle ecosystem, including on- and off-course golf.”
The California-based golf equipment and apparel company closed its acquisition of Topgolf in 2021, in a deal that gave the golf entertainment business a nearly $2 billion valuation. Callaway now expects Topgolf to account for the biggest share of its 2022 revenue.
Topgolf has already outperformed equipment sales on a quarterly basis, accounting for more revenue in the third and fourth quarters of 2021. It represented more than $403 million of Callaway’s $1.12 billion in revenue in its most recent April through June quarter.
“We are excited to introduce Topgolf Callaway Brands, which better acknowledges our long-term strategic path forward, while emphasizing our unique and dominant leadership in the modern golf space,” said Callaway CEO Chip Brewer in a statement. “With the change, our new corporate identity will reinforce the opportunities that are anchored in our strong heritage business and at the same time build important awareness for our strategic shift toward exciting new ventures.”
Brewer said the name change captures the company’s selling points — “robust growth and change along with stability and strength.”
In a recent conference call with investors, Brewer acknowledged that some analysts were initially skeptical of the Topgolf deal but then added: “I believe the string of consistent results since our merger should soon begin to change perspectives and valuations.”
Topgolf, with over 60 locations globally, also insulates Callaway from being hurt too badly by a post-COVID-19 dip in golf rounds played, according to JPMorgan analysts who follow the company.
The name change is expected to take effect around Sept. 6. The company will also change its New York Stock Exchange ticker symbol from ELY to MODG — a nod to what it considers the modern golf ecosystem.
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