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Topgolf Callaway Launches Topgolf Shop, Boosts Digital Business

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Topgolf Callaway Brands Corp. (MODG - Free Report) is focusing on boosting its digital business, especially by building out its Topgolf brand’s digital business. Capitalizing on the opportunities this strategic initiative offers, the company, with its Topgolf brand, recently launched a golf equipment website, Topgolf Shop.

This transitionary move amalgamates Topgolf Callaway’s expertise in the golf equipment space with the Topgolf brand’s motto of making the game more accessible to new players or beginner golfers of the market.

More on MODG’s Topgolf Shop

Topgolf Shop is a user-friendly and easy-use website that guides players effortlessly on their journey to becoming on-course golfers. A well-arranged survey guiding players through the gear recommendation process; access to valuable information and convenient resources for enhancing golf skills and a plain sailing navigation of the site that allows players to peruse individual products for purchase are some of the highlights of the newly launched website.

Furthermore, MODG aims to roll out additional product offerings by the end of 2024 through the website exclusively, which will include special edition Chrome Tour golf balls, Ogio accessories, Topgolf-branded accessories and exclusive golf equipment.

MODG’s Focus on Digital Business Bodes Well

Topgolf Callaway believes that it can enhance its market share and earn favorable growth opportunities by strategically investing in boosting its digital business. A significant portion of the company’s investments are focused on strengthening its digital capabilities, both from a technology perspective, such as implementing PIE, its reservation system and its consumer data platform as well as from a talent and organizational perspective.

In the second quarter of 2024, MODG’s digital sales penetration increased 50 basis points year over year to 35%. Given the favorable trends in the market for its digital offerings and the growth prospects visible through the enhancement of digital capabilities, the company aims to continue strengthening this business aspect. These investments are likely to reflect more in the Topgolf segment, which includes operations of the company-operated and franchised Topgolf venues, Toptracer ball-flight tracking technology and WGT digital golf game.

Zacks Investment Research
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MODG stock has lost 29.6% in the past three months against the Zacks Leisure and Recreation Products industry’s 20.2% growth. Headwinds in the form of softer traffic due to macro challenges, foreign exchange risks and low wholesale revenues at Jack Wolfskin are marring its prospects. Nonetheless, the company’s focus on enhancing digital abilities and diversifying product offerings is likely to boost its long-term success.

MODG’s Zacks Rank & Key Picks

Topgolf Callaway currently carries a Zacks Rank #3 (Hold).

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The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates an increase of 9.9% and 127.1%, respectively, from the year-ago levels.

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