Acushnet Holdings Corp, the U.S.-based group behind the golf brands Titleist, FootJoy and Pinnacle and the Swiss sports apparel brand Kjus, reported an 8.0 percent increase in consolidated sales to $521.6 million in the third quarter ended Sept. 30, scoring better than what analysts had expected. On a constant-currency basis, sales were up by 7.0 percent. As compared to the same period of 2019, this represented a strong increase of 25.0 percent.
The quarterly net income of $39.3 million was down by 37.8 percent from $63.2 million in the third quarter of 2020, but it was higher than the net income of $9.5 million reached in the same period of 2019.. The group generated adjusted Ebitda of $70.3 million in the quarter, down 29.1 percent year over year and up 26.0 percent compared with 2019.
The quarterly sales growth stemmed mainly from strong sales and higher average selling prices for Titleist clubs and FootJoy golf apparel and footwear. Declines occurred in the Titleist golf ball business as well as in FootJoy golf gloves, due in part to disruptions in production and the supply chain. Acushnet said that the Kjus brand of skiwear and golfwear, which it acquired in the summer of 2019, “continues to flourish in both the United States and Europe.”
Across all geographies, sales were down by 2.7 percent in Titleist golf balls, but this was compensated by increases of 11.5 percent for Titleist golf clubs, 4.1 prcent for Titleist golf accessories and 17.6 percent for FootJoy golf wear.
Total revenues grew by 4.2 percent in the U.S. and by 12.9 percent elsewhere, with growth of 10.5 percent on a constant-currency basis. The group mentioned in particular higher sales of FootJoy golf wear in Korea and Titleist golf clubs in Japan.
Higher sales increases were scored in the first half of this year, as more golf rounds were played than in the same period of last year, due to Covid restrictions. For the first nine months of 2021, consolidated sales were up by 45.0 percent in dollars and by 40.9 percent in constant currencies.
Although it expects supply chain disruptions to continue in the fourth quarter and into 2022, Acushnet has improved its guidance for the current financial year. Sales are now expected to go up by between 26.1 and 28.0 percent to a range of up to $2,110 million, indicating growth in local currencies of between 16.8 percent and 20.6 percent. Adjusted Ebitda should reach a level of between $305 million and $325 million.
Acushnet also announced the expansion of its existing $100 million share repurchase program to $200 million.
