Fortune Brands reported that first quarter revenues were relatively flat at its Acushnet golf division, which includes the Titleist, Cobra and Footjoy brands, due primarily to the timing of new product launches, which they expect will benefit the second quarter, and lower rounds of gold played in the U.S. due to poor weather in many parts of the country. The negative impact from the domestic business was offset in part by record first-quarter sales in Europe and double-digit increases in Australia, Korea and China.
Total Acushnet division revenues declined 1.4% to $367.1 million in Q2 from $372.5 million in the year-ago quarter. Operating income slid 8.2% for the period to $53.6 million, compared to $58.4 million in Q2 last year, due to the “timing of expenditures and closeout pricing in advance of the launch of next generation products.” Management said that “golf ball sales grew solidly on continued share gains” for the Titleist Pro V1 product family.
Golf club sales were down in the single-digits, due to the timing of new product introductions, as well as closeouts on some previous generation iron models. Sales of golf shoes and accessories were essentially flat.
Looking ahead, Acushnet continues to target operating income, before charges, to grow in the low- to mid-single-digit range.
>>> Interesting, since lower rounds played usually impacts ball sales more than club sales…
>>>>Club sales are also most likely seeing some impact from the new square-head Callaway and Nike drivers that appear to be sucking a lot of air out of the room these days
