Topgolf Callaway Brands (MODG) CEO Chip Brewer this evening told Wall Street analysts that the company recorded an incremental tariffs expense of $12 million in Q3 of 2025 across its businesses.
“We continue to forecast approximately $40 million for the full year,’’ Brewer said. “Given that the new tariffs were phased in during the year, along with the FIFO (First In, First Out) nature of our inventory, the impact will unfortunately increase meaningfully going forward, assuming, of course, that the current rates hold.’’
Brewer added the company intends to mitigate as much of this impact as possible “via efficiency improvements, pricing, and vendor negotiations. ‘’
As part of that ongoing process, Brewer said Topgolf Callaway Brands recently implemented a reduction in force of about 300 positions, but doesn’t see any future employee layoffs as appropriate.
“However,’’ Brewer said, “we’re going to have to continue to be very attentive to overall cost management and margin initiatives.’’
Photo: Chip Brewer (Topgolf Callaway Brands)