Acushnet Holdings, the parent of the Titleist, FootJoy, and KJUS brands, produced a 15.2 percent increase in Q1 net income to $93.3 million versus $81.0 million in the year-ago period ended March 31. Total revenues, benefitting from new product introductions for another golf season and enhanced supply chain and customization capabilities, rose by 13.2 percent to $686.3 million from $606.1 million. The gross margin improved by 100 basis points to 53.3 percent from 52.3 percent, and the year-over-year inventory level dipped by 5.3 percent to $639.1 million.
Geographically, the EMEA had flat constant-currency sales of $104.8 million as sales rose in all reportable segments except for FootJoy golf wear. Sales in both the U.S. (+25.3%) and Japan (+15.9%) were each up double digits to $369.9 million and $46.4 million, respectively. Sales into Korea rose by 9.9 percent to $89.0 million and were 19.8% higher in the Rest of World to $76.2 million.
Meanwhile, three of Acushnet’s product segments generated double-digit sales increases, led by a 20.6 percent gain for Titleist golf balls to $192.0 million on higher volumes for its latest generation Pro V1 and Pro V1x golf balls that were launched during the period. Golf club sales lifted 16.3 percent on a constant-currency basis to $180.8 million, driven by higher volumes for TSR drivers and fairways launched in Q3/22 and TSR hybrids that debuted during the period.
Year-over-year improvements in supply chain and fulfillment constraints were the primary contributors to a 57.4 percent increase in Titleist golf gear sales to $67.0 million. Foot Joy’s quarterly revenues rose by 7.8 percent on a constant-currency basis to $205.3 million.
Simultaneous with the release of Q1 results, the group confirmed its FY23 outlook that calls for consolidated net sales of $2,325 to $2,375 million and an adjusted Ebitda range of $345 to $365 million. Consolidated net sales on a constant-currency basis are forecast to rise in the 5.0 to 7.2 percent range.
