The Titleist and FootJoy parent generated flat, year-over-year operating income of $106.0 million and a 1 percent constant-currency sales increase for the period ended June 30. Net income declined by 4.3 percent to $71.4 million from $74.7 million, but gross margin improved by 90 basis points.
President and CEO David Maher said, “There remains strong participation and enthusiasm for the game of golf, particularly in the US, where rounds of play were up 2 percent year-to-date. Rounds outside the U.S. are resilient but down slightly as markets started slowly due to poor spring weather.
Acushnet Holdings’ reported Q2 sales slipped by 0.8 percent to $683.9 million versus $689.4 million in the year-ago period. US sales rose 1.8 percent to $408.5 million, driven by an 8.5 percent increase in Titleist golf balls and a 4.8 percent improvement in FootJoy golf wear. Titleist golf club sales declined by 9.0 percent as lower sales of second-model-year products offset higher volumes of T-Series irons and recently launched SM10 wedges and Phantom putters.
Outside the U.S., Q2 sales declined by 4.4 percent or 1.0 percent on a constant-currency basis. Sales in the EMEA rose by 1 percent in constant currency to $86.7 million and by 3.7 percent in Japan to $29.8 million. Revenues were up nearly 1 percent in Korea to $83.8 million and fell by 7 percent in Rest of World to $75.1 million. The group is pleased with golf ball and club momentum across Asia, but admits the region continues working through excess footwear and apparel inventory. There is also elevated footwear inventory in both Europe and Asia.
By product category on a constant-currency basis, golf ball sales rose by 5.3 percent to $247.5 million; golf club sales dipped by 4.1 percent to $177.5 million; Titleist golf gear sales were flat at $68.9 million; and FootJoy golf wear sales were 0.7 percent higher at $157.2 million. In H2, Acushnet intends to launch Titleist GT drivers and fairway metals and new products from FootJoy and Kjus.
With the Q2 results, the company reaffirmed its FY24 outlook that calls for consolidated net sales of $2.45 to $2.5 billion and adjusted Ebitda of $385 to $405 million.
