Citing strong demand for its products, enthusiasm for the game of golf, and healthy fundamentals across the industry, Acushnet confirmed its full-year revenue outlook and narrowed its full-year expectations for adjusted Ebitda while reporting Q3 results. The Titleist, FootJoy, and Kjus parent continues to see FY revenues in the $2.35 billion to $2.4 billion range. Annual adjusted Ebitda is now pegged at $365 to $375 million, up from the prior range of $355 to $375 million.
Operating income rose 3.4 percent to $78.6 million from $76.0 million in Q3 ended Sep. 30. Net income attributable to the company increased by 10.6 percent to $57.3 million from $51.8 million, aided by the higher operating income and lower income tax expense. Total sales lifted 6.3 percent higher to $593.4 million from $558.2 million. Gross margin was down by 80 basis points to 52.0 percent from 52.8 percent in the year-ago period.
Golf club sales, bolstered by higher volumes from the recently launched Titleist T-Series irons, rose by 17.9 percent on a constant-currency basis to $181.0 million. Golf ball sales, helped by higher average selling prices (ASPs) for the Pro V1 and Pro V1x, improved by 6.2 percent year-over-year to $192.6 million. Titleist golf gear sales, hurt by a difficult year-over-year comparison, realized lower golf bag and headwear volume that contributed to a 19.9 percent decline in quarterly revenues to $47.7 million. FootJoy golf wear sales, assisted by higher average selling prices for apparel, rose by 3.4 percent to $136.7 million.
Geographically, Japan was the strongest region during the period as sales there increased by 19.2 percent on a constant-currency basis to $39.0 million. Revenues in EMEA inched 1.6 percent higher to $75.6 million and fell by 7.9 percent in Korea to $65.7 million on lower sales volumes of Titleist golf gear. Period sales in the home U.S. market increased by 7.6 percent to $352.5 million, driven by a 14.0 percent increase in golf club sales, a 12.1 percent improvement in FootJoy golf wear, and a 7.9 percent gain in Titleist golf balls.
