Topgolf Sells Jack Wolfskin for $290M: Financial Outlook Unchanged

Topgolf Callaway Brands Corp. has agreed to sell its Jack Wolfskin brand to ANTA Sports for $290 million. Despite the sale, Topgolf maintains its financial guidance, projecting $325M in revenue and €12M in adjusted EBITDA from Jack Wolfskin.

Date: 10-04-2025

AI Rating: 6

Transaction Overview: Topgolf Callaway Brands Corp. announced the sale of its Jack Wolfskin business to ANTA Sports Products Ltd. for $290 million. The deal is projected to close in late Q2 or early Q3, reflecting strategic movement within Topgolf’s portfolio.

Financial Expectations: The report outlines that Topgolf anticipates no changes to its financial guidance post-sale. Notably, the Jack Wolfskin business is projected to generate around €325 million in revenue and €12 million in adjusted EBITDA for the full year. However, the initial half of the fiscal year 2025 is anticipated to show an EBITDA loss of €18 million, highlighting seasonal challenges.

Topgolf envisions revenue of approximately €210 million along with an EBITDA of €30 million for the latter half of the year. This expectation indicates a targeted recovery and growth following potential seasonal impacts in the first half. Investors will be particularly focused on how the sale proceeds will be utilized, especially if it helps to reinvest in core operations or pay down debt, potentially improving overall profitability metrics.

Performance Metrics Analysis: While this report does not provide specific earnings per share (EPS) figures or net income data, the expected EBITDA metrics are critical. The anticipated EBITDA figures suggest a pathway to either improving margins or offering indicators of operational efficiency post-sale.

Given the circumstances, maintaining a revenue projection of €115 million for the first half is neutral amid expected loss. The second half projections are reasonably optimistic, which could be viewed positively from an investment standpoint, indicating potential growth recovery. With the stock market reaction of a slight decline (-0.32%) pre-market, investor sentiment may be cautious but awaits further insights as ANTA integrates Jack Wolfskin within their operational framework.

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