By Connor Hart

Topgolf Callaway Brands logged higher sales in the fourth quarter on improved golf equipment sales, though a noncash impairment charge resulted in a much wider loss.

The Carlsbad, Calif., company on Monday posted a net loss of $1.51 billion, or $8.23 a share, compared with a loss of $77.1 million, or 42 cents a share, a year earlier. The recent quarter includes a $1.45 billion charge related to Topgolf's goodwill and intangible assets, the company said.

On an adjusted basis, the company reported a loss of 33 cents a share. Analysts surveyed by FactSet expected an adjusted per-share loss of 40 cents.

Revenue increased 3%, to $924.4 million, topping the $884.7 million that analysts forecast.

Topgolf sales were flat year-over-year at $439 million. Sales of golf equipment increased 13%, to $224.8 million, while sales of active-lifestyle apparel edged higher, to $260.6 million.

The company said its 2025 outlook assumes a consumer environment similar to last year.

It guided for revenue between $4 billion and $4.185 billion, including an approximately $105 million headwind stemming from foreign-exchange rates and the sales of its Topgolf World Golf Tour mobile-gaming business. Analysts surveyed by FactSet modeled revenue of $4.33 billion in 2025.

"Given the strength of our brands and their market positions, our operational capabilities, and our financial position, we are confident we will work through these short-term headwinds and return to growth," Chief Executive Chip Brewer said.

The company continues to expect $50 million in one-time separation costs, as it will split the company into two businesses, unwinding after less than four years a tie-up between the golf-club maker and driving-range operator. Announced in September, the split is expected to be completed in the second half of the year.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

February 24, 2025 16:34 ET (21:34 GMT)

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