Callaway Stock Drops 2.8% After Controversial Ad Depicting Violence Against Women

Callaway Golf stock dropped 2.8% to $21.33 on Monday following widespread backlash over a deleted advertisement that showed Good Good co-founder Garrett Clark shoving professional golfer Alexis Miestowski to the ground. Callaway approved the video before posting, then deleted it within hours. CEO Chip Brewer issued an extended apology and said the company is launching internal and external investigations to prevent similar incidents.

What the ad showed and why it drew criticism

Good Good posted a 15-second video promoting a co-branded Callaway driver on Friday. It depicted Clark tackling Miestowski as she reached for the driver, then standing over her saying “Do not touch my new driver.” The ad drew immediate criticism for depicting violence against women. Miestowski reacted with visible pain. Both companies deleted the video within 24 hours and apologized.

Callaway’s response and investigation

CEO Chip Brewer issued a statement on Monday acknowledging that Callaway approved the video before posting. “That approval should never have happened,” Brewer said. The company is conducting internal and external investigations and plans to change its approval processes. Brewer stated Callaway is “unequivocally against discrimination, domestic violence, or threatening behaviour of any kind.”

Industry reaction and Good Good’s response

Good Good, which has over 2 million YouTube subscribers, posted an apology saying the video “did not align with our values as a brand.” The PGA Tour, which Good Good is sponsoring with the inaugural $6 million Good Good Championship in Austin this November, distanced itself from the ad. “We do not condone violence in any form,” the PGA Tour said in a statement. Callaway initially said it was “appreciative of Good Good for addressing this.”

Stock impact and investor outlook

ELY fell 2.8% on the news, closing at $21.33. The stock trades at a P/E ratio of 41.8, well above historical norms, and carries a Meyka grade of B with a HOLD rating. The controversy poses reputational risk to Callaway’s brand partnerships and sponsorships, though the long-term financial impact remains unclear. Investors should monitor whether the investigations lead to further management changes or sponsor departures.

Final Thoughts

Callaway’s stock dropped 2.8% after approving an ad depicting violence against women. CEO Brewer’s swift apology and investigation announcement may limit further damage, but the reputational hit underscores governance failures across both companies.

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