Acushnet Holdings, the Titleist, FootJoy and Kjus parent, is impressed with golf’s resilience across the region, particularly in the UK, despite experiencing a 1.4 percent constant-currency decline in FY23 EMEA sales to $314.7 million when up against 20 percent growth in FY22. In Q4, the group’s EMEA sales dropped by 2.6 percent to $48.2 million.
“We’ve all been cautious and careful about EMEA, certainly in 2023, whether it’s inflation or energy costs or the war,” commented David Maher, President and CEO of Acushnet Holdings.
The group reported an overall net loss of $26.8 million in Q4 ended Dec. 31 on a 7.7 percent decline in total revenues to $413.0 million. Gross margin improved by 80 basis points to 50.8 percent. Titleist golf ball sales rose by 4.9 percent in constant currency to $139.6 million, with the US and EMEA setting the pace. All other product segments reported lower year-over-year sales. Golf club sales fell by 17.1 percent to $108.8 million; Titleist golf gear sales slipped by 3.7 percent to $31.6 million; and FootJoy golf wear declined by 14.2 percent to $96.2 million.
For the full year, Acushnet reported an essentially flat net income at $198.4 million despite a 4.9 percent sales expansion to $2.38 billion from $2.27 billion. Annual gross margin improved by 70 basis points to 52.6 percent. Annual golf ball sales lifted 13.5 percent higher to $761.7 million. Titleist golf club sales swung 9.5 percent higher in FY23 to $658.6 million. Elsewhere, golf gear sales rose by 7.0 percent to $216.2 million, and FootJoy golf wear revenues fell by 2.1 percent last year to $596.4 million.
The group, which will commence operating a new golf ball customization technology this year to improve lead times for custom imprinted Titleist golf balls, is currently forecasting total sales growth of 3.2-5.3 percent this year to $2.45-$2.50 billion with adjusted Ebitda expected to come in the $385-$405 million range. Meanwhile, Acushnet recently began fulfilling orders from a new 46,000 sqm distribution and custom embroidery center in Massachusetts.
