Fortune Brands reported a record first quarter for its Acushnet Golf division, which includes the Titleist, Cobra, and FootJoy brands, as sales for the period increased 1.0% to $343 million, compared to $338.9 million in the year-ago period. Sales had jumped 20% in Q1 2004 on a shift in product introductions. Operating income grew 11% to $57 million in Q1 from $51.0 million in the prior-year period, which included about $2 million in restructuring and related charges. Excluding those charges, operating income would have grown 7%, primarily due to a favorable shift in product mix and cost containment.
Sales growth was said to be broad-based with the exception of Titleist brand golf clubs which trailed last year due to the timing of new product launches. Titleist golf balls led the revenue growth in the division. The company said that golf ball share for Titleist and Pinnacle is up 2 points at on- and off-golf course shops over the past 12 months. Footjoy was said to have had “strong growth” on new advanced technology shoe and glove styles, as well as the new Classics tour and Concept series golf shoes. International is also seen as an opportunity here. Cobra was also said to have “strong sales growth” on success of the recently introduced Cobra Bafflers and Inertia series irons.
For the full year, the company expects to see operating income before charges in golf to grow low- to mid-single-digits.
