Do Tariff-Driven Margin Pressures Signal a Strategic Turning Point for Callaway Golf (CALY)?

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Callaway Golf (CALY) reported lower-than-expected fourth-quarter 2025 sales and issued slightly reduced 2026 sales guidance, largely attributing the shortfall to higher tariff expenses and the divestiture of Jack Wolfskin and most of Topgolf. The company’s investment narrative now focuses on its core golf business, aiming to offset tariff and cost pressures through innovation and cost control, while analysts have varying outlooks on its future revenue and earnings growth. Investors are urged to consider the impact of tariffs and softer demand on the company’s margins and overall investment prospects, with a fair value estimate suggesting a 10% upside.

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