Acushnet Holdings reported a 42 percent jump in first-quarter revenues, boosted by strong demand for its Titleist and FootJoy products as golfers returned to the fairways after Covid lockdowns. Kjus, too, enjoyed some growth in the quarter as gains in golf and lifestyle offset a decline in skiwear.
In the three months to March 31, sales hit $580.9 million against $408.7 million a year earlier. The score was also 34 percent better than the first quarter of 2019 as Acushnet put the current numbers in context given the year-long impact of the pandemic.
Adjusted Ebitda rose by 156.3 percent against last year and by 111 percent versus 2019, reaching a level of $135.3 million and sending the adjusted Ebitda margin up to 23.3 percent versus 12.9 percent for the same period a year ago.
Sales of Titleist golf balls climbed by 49.4 percent to $173.6 million, driven by higher sales volumes for its latest generation Pro V1 and Pro V1x balls launched in the first quarter.
Sales of Titleist golf clubs jumped by 67.2 percent to $155.8 million due to higher sales volumes of TSi drivers, fairways and hybrids and Phantom X putters. They were boosted by higher average selling prices across all categories, partially offset by lower sales volumes for its previous generation wedges.
Sales of Titleist golf gear increased by 22.1 percent to $53.1 million, with unit increases across all categories.
Sales of FootJoy golfwear went up by 22.2 percent to $159.4 million, boosted by sales volume increases in footwear and gloves and higher average selling prices across all product categories.
Double-digit growth was recorded in every geography except for the EMEA region, where sales increased by 8 percent in dollars to $80 million, with a drop of one percent in local currencies, due to Covid-related shutdowns, but participation levels were healthy where golf courses were open.
Sales rose by 46.3 percent in the U.S. to $308.6 million. On a constant-currency basis, they were up by 46 percent in Korea, where the number of round increased by 20 percent. Currency-neutral increases of 46 percent and 48 percent were registered in Japan and the rest of the world, respectively.
Acushnet is projecting an increase of between 70 and 80 percent for the second quarter, but the second half will not be as strong because of a shift in the timing of new product launches. The company expects full-year consolidated sales of between $1.795 billion and $1.875 billion, generating adjusted Ebitda of around $255 million to $285 million.
This outlook assumes no significant worsening of the Covid-19 pandemic, including incremental closures of global markets and additional supply chain disruptions.