Quarterly net income attributable to Acushnet Holdings Corp. fell by 1.9 percent to $56.2 million from $57.3 million for the period ended Sep. 30. Ebit was essentially flat at $68.5 million and adjusted Ebitda increased by 8.7 percent year-over-year to $107.4 million. Gross margin improved by 240 basis points to 54.4 percent from 52.0 percent due to higher sales volumes and a favorable product mix in golf clubs.
The parent of the Titleist and FootJoy brands realized 4.6 percent sales growth during the period to $620.5 million from $593.4 million. Titleist golf ball sales rose by 18.2 percent to $213.9 million year-over-year, helped by the introduction of new GT drivers and Fairway metals. Q3 golf ball sales, meanwhile, contracted by 1 percent to $190.6 million from $192.6 million. The company said the small decline in ball sales wasn’t surprising given its trade partners decision to lower their inventories ahead of the January launch of new Pro V1 models.
Meanwhile, Titleist golf gear sales rose by 8.2 percent to $51.6 million during the period. And FootJoy golf wear sales declined by 3.6 percent to $133.1 million in what the group described as a “soft apparel and footwear market across most regions.” FootJoy will shortly complete a transition of its footwear production to a new facility in Vietnam that is being opened and managed by its longtime joint venture partner.
By region, Q3 sales were strongest in the US at 6.2 percent growth to $374.2 million as the region continued to benefit from healthy participation and durable consumer demand. According to Acushnet, US rounds were up 2 percent through September, keeping pace with the record level established in 2021. EMEA revenues were essentially flat during the period at $75.5 million. Sales in Japan swung 2.7 percent higher to $41.7 million and rose by 1.4 percent in Korea and Rest of World to $67.1 million and $62.0 million, respectively.
With the results, Acushnet narrowed its adjusted Ebitda range for FY24 to $395-$405 million and re-affirmed its annual sales outlook at $2.45-$2.5 billion on a reported basis with the final total expected to be impacted by currency effects.
