On Monday,
Harley-Davidson announced the company’s board of directors has officially named
Arthur Starrs, current CEO of Dallas-based
Topgolf International, as the manufacturer’s next president and CEO.
Starrs joined Topgolf in April 2021, just a few weeks after the company was acquired by
Callaway Brands, which led to the creation of the organization called Topgolf Callaway Brands.
Topgolf Callaway Brands reported 2021 net revenue of $3.1 billion in 2021, according to SEC filings. Topgolf contributed approximately $142.9 million of that total.
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Arthur Starrs[/caption]
In 2024, the Topgolf segment of Callaway Brands reported revenue of $1.81 billion. Callaway Brands also includes golf equipment and active lifestyle business segments, which altogether posted revenue of $4.24 billion in 2024.
In April 2021, Callaway Brands’ stock price was $27.15, which jumped to a five-year high of $36.92 following the acquisition of Topgolf. Since then, the company’s stock price has dropped to $8.48.
Lately, the Topgolf business has been hit hard by slowing consumer spending, according to
a Wall Street Journal report.
This led to the decision to spin off Topgolf into its own entity, separate from Callaway Brands.
"Over the last 18 months, as the mid-income consumers become more stretched, Topgolf has begun to be perceived as relatively expensive. And in a slowing consumer environment, this is a significant," said
Chip Brewer, president and CEO of Topgolf Callaway Brands during the company's first quarter 2025 earnings call.”
Starrs helped launch several initiatives aimed at boosting foot traffic in Topgolf’s 107 venues, including “Sunday, Funday” and “Topgolf Nights." These initiatives targeted price-sensitive consumers with deals on food and beverage offerings and play time at Topgolf venues.
"It's clear that our corporate events business is going to be challenged in the near term, and we have modified our operating structure accordingly," said Starrs. "Lead volumes are down significantly, but we are providing more flexibility on rate and time for event planners, which has led to increased conversion rates."
In the first quarter of 2025, Topgolf Callaway Brands reported a 4.5% year-over-year decrease in net revenue primarily driven by a decrease in Topgolf same venue sales.
As Starrs transitions to lead Harley-Davidson, he’ll once again be tasked with changing the direction of another struggling consumer brand.
The iconic motorcycle-maker
reported last week a second quarter revenue decrease of 19% compared to the same period a year ago. Global motorcycle shipments also decreased 28% for the quarter year-over-year.
Harley-Davidson’s revenue has decreased for the last three quarters, with company leadership continually citing softening consumer demand and economic uncertainty.
"It's a huge privilege to be joining Harley-Davidson as president and CEO, and I am grateful for the opportunity to help steward this incredible company," said Starrs in a Monday announcement. "I have long admired the unique position Harley-Davidson has in the hearts of its riders and fans; there is no brand that brings the same level of community and rebellious spirit as Harley-Davidson. I'm excited by the tremendous potential to both drive growth and further enhance the H-D experience for all, and I look forward to working with the dedicated Harley-Davidson employees and dealer network as we start this journey together."
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