Topgolf Callaway Brands (MODG) Extends Perry Ellis Pact and Eyes Premium Apparel Launch Through 2032

• Topgolf Callaway Brands announced in November 2025 that it has extended its multi-year licensing agreement with Perry Ellis International for the design, manufacturing, and distribution of Callaway-branded golf and lifestyle apparel until December 31, 2032.
• This extension not only secures a long-term partnership but also sets the stage for the launch of a jointly developed premium Callaway Apparel line by 2028, emphasizing an expanded focus on premium offerings and global reach.
• We'll now explore how the upcoming premium product launch and extended Perry Ellis partnership could influence Topgolf Callaway Brands' investment narrative.

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Topgolf Callaway Brands Investment Narrative Recap

To own Topgolf Callaway Brands stock, you need to believe in its ability to grow both the Topgolf venue network and the golf lifestyle brand, capitalizing on demand for entertainment and premium golf experiences. While the extended Perry Ellis apparel partnership with a premium product for 2028 signals a global brand focus, it is unlikely to materially affect the most immediate catalyst: the recovery in same-venue sales, or address the biggest current risk of margin pressures due to aggressive discounting and soft discretionary spending.

One related recent announcement is Topgolf Callaway Brands’ raised full-year 2025 revenue guidance, reflecting stronger expectations in both Topgolf and equipment segments. However, even with these improved outlooks, ongoing reliance on value promotions means that revenue gains could come at the cost of profitability, especially if pricing power remains under pressure.

By contrast, investors should be aware that sustained discounting at Topgolf venues could continue to limit average ticket size and...

Read the full narrative on Topgolf Callaway Brands (it's free!)

Topgolf Callaway Brands' narrative projects $4.1 billion revenue and $209.7 million earnings by 2028. This requires a 0.5% annual revenue decline and an earnings increase of about $1.7 billion from current earnings of -$1.5 billion.

Uncover how Topgolf Callaway Brands' forecasts yield a $11.06 fair value, in line with its current price.

Exploring Other Perspectives

Fair value opinions from five Simply Wall St Community members for Topgolf Callaway Brands range from US$2 to US$15 per share. While revenue guidance is up, persistent discount-driven margin risks highlight why individual outlooks can differ so widely.

Explore 5 other fair value estimates on Topgolf Callaway Brands - why the stock might be worth as much as 33% more than the current price!

Build Your Own Topgolf Callaway Brands Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Topgolf Callaway Brands research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Topgolf Callaway Brands research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Topgolf Callaway Brands' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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