The Acushnet Co., the division of Fortune Brands that includes the Cobra, Titleist and FootJoy brands, reported fourth quarter revenue was up 6.9% to $226.9 million from $212.2 million a year ago. Comparable net sales were up 2%. In a conference call with analysts, management said strength from golf balls, shoes and gloves had driven results for the quarter. Likewise, a more-than 30% constant currency sales increase in Korea – which management called “a very attractive growth prospect…” – boosted international sales. Management added that participation in golf “remains solid” in the U.S., but spending was down. The company also said markets outside the U.S. continue to present the best growth opportunities in golf, including Asia, where management said the company has seen investments “pay off strong.”

 

 

For the full year, golf sales fell 11.0% to $1.2 million from $1.4 million a year ago, with an operating income after charges of $25.0 million, down 80% from operating income of $125.3 million a year ago.

 

Sales were off more that 10% in the U.S. for the year, but management said revenues outside the U.S. improved at a low-single digit rate on a constant-currency basis. Likewise, the golf ball business, which includes the popular Pro V1 line, were down double digits for the year, despite Pro V 1s gaining share in the US.

 

For clubs, Titleist “modestly increased sales” on strength from new products and U.S. share gains in metals, wedges and putters. Sales at Cobra were off at a double-digit rate while FootJoy was down at a single-digit rate. Sales of gloves and accessories were off single digits for the year.

 

Regarding outlook, management expects worldwide spending on golf equipment to be up at a low-single-digit rate. Likewise, the company will continue to accelerate growth initiatives in international markets – particularly Asia.