Fortune Brands’ Acushnet Golf division surprised the parent company and analysts alike last week, reporting a 16% increase in sales to a record $275 million for the third quarter. Operating income increased 32% to $33 million, up 39% before charges.

“At the outset of the quarter, we had a cautious outlook given levels of competitor inventories and depressed rounds of play”, said Fortune Brands chairman & CEO Norm Wesley in a conference call with analysts. “We're extremely pleased that our golf brands maintained such strong momentum, shattering third quarter records, and significantly outperforming the industry in a challenging environment.”

Challenging to be sure. Weather and the economy significantly impacted the number of rounds played this year to-date. Wesley said YTD sales at the company’s golf division, which includes the Cobra, Titleist, Pinnacle and Footjoy brands, grew 11% while rounds played increased just 3.0%. Sales of golf balls and golf clubs were both up in “strong double-digits”.

FO reported that combined share for the Titleist and Pinnacle golf ball brands gained 400 basis points in August versus August LY when measured in units and 600 basis points in dollars. The company said that the combined Titleist-Cobra share on and off course is up 700 basis points YTD in drivers and metals.

Footjoy's market share is nearly three points higher than a year ago and nearly four times its nearest competitor. Share is highest in the premium segment of the market where shoe prices are $100+ per pair at retail.

In gloves, Footjoy and Titleist combined are up nearly 300 basis points YTD in share and lead the category by more than nine times the nearest competitor. Sales of accessories, led by Footjoy's performance outerwear, grew in the double-digits.

FO is targeting operating income in golf, before charges, to be up low double-digits for 2003. Fourth quarter is expected to face difficult comparisons “due to the timing and support of new product introductions”.

The CEO pointed to the aging baby boomer population as a strong driver for future sales and earnings growth, indicating that people in their 30’s play golf 30 times per year, a figure that jumps to 50 times a year for people in their 60’s.