Acushnet Holdings Corp., after exceeding the low-end of its annual revenue and Ebitda range forecasts for FY22, has established consolidated net sales guidance of $2,325 to $2,375 million for FY23, a growth range of 2.0 to 7.9 percent year-over-year, and an adjusted Ebitda range of $345 to $365 million. Senior management told analysts that the company had fared better than its peers during economic downturns earlier this century.
In Q4, the group reported an operating profit of $11.6 million against a loss of $21.9 million on 6.4 percent revenue growth to $447.4 million versus $420.6 million. The net loss was $58,000 against a loss of $26.4 million as gross margins improved to 50.0 percent from 48.6 percent. Three product categories posted double-digit sales gains in the period ended Dec. 31, led by a 21.9 percent increase (32.1% in constant currency) in Titleist golf clubs to $130.7 million. Golf ball sales were 6.3 percent higher (12.1% in c.c.) to $132.4 million; golf gear revenues increased by 16.1 percent (26.2% in c.c.) to $32.4 million; and FootJoy sales declined by 6.5 percent (+0.2% in c.c.) to $110.9 million. Regionally, EMEA sales declined 4.9 percent to $46.7 million despite increases in all categories except golf clubs. Sales in Korea 17.2 percent (-3.2% in c.c.) to $58.6 million on lower FootJoy sales and fewer sales from products not allocated to one of the company’s four segments. In the U.S., final period revenues grew by 16.1 percent to $253.6 million, and Q4 sales in Japan rose by 11.3 percent (42.3% in c.c.) to $42.4 million.
For FY22, Acushnet’s annual sales of $2.27 billion were up 5.7 percent from FY21 as operating income grew by 4.7 percent to $259.4 million from $247.8 million. Annual net income improved by 11.4 percent year-over-year to $199.3 million from $178.9 million, but annual gross margin dipped slightly to 51.9 percent from 52.1 percent last year. Inventories were up 63 percent year-over-year at FY22’s end at $674.7 million, but the company expects them to return to “more normal seasonal levels” by mid-year.
EMEA sales in FY22 rose 8.6 percent (20.5% in c.c.) to $321.5 million. Sales in both Japan and Korea declined for the FY, falling by 14.4 percent and 3.1 percent, respectively to $161.0 million and $312.7 million. Annual revenues in the home U.S. market increased by 9.1 percent to $1,227.8 million. Results by category showed a 1.7 percent (5.7% in c.c.) growth in golf balls to $678.8 million that was aided by higher average selling prices; a 10.5 percent (16.3% in c.c.) gain in golf clubs to $609.6 million on higher sales from SM9 wedges, Phantom X putters, T-series irons and TSR drivers and fairways that was partially offset by sales from second-year hybrid models; a 6.4 percent improvement (12.5% in c.c.) in Titleist golf gear to $204.9 million driven by higher ASPs in all product categories; and a 6.4 percent (12.2% in c.c.) jump in FootJoy golf wear sales to $618.0 million.
Acushnet, which is investing in global distribution capabilities as part of an effort to “rethink and re-imagine how it circulates products, is caught up but not oversupplied with golf balls. Starting this year, the group has a larger golf ball supply chain as a key raw materials supplier has grown its capacity, and new contractors have been added. In apparel, the company has increased its customization capabilities in both the U.K. and the U.S., where club logos are prevalent.
Two recent group investments are a long-term partnership with TPI, which provides golf-specific health, fitness, and swing advice through the MyTPI website, and last month’s acquisition of Club Glove, a maker of golf travel gear that is the preferred brand of many PGA club professionals.
