Fortune Brands reported its fourth quarter in the row of top line growth for its Acushnet Golf division, which includes the Titleist, Cobra and FootJoy brands, as first quarter sales increased 20% to $338.9 million from $282.4 million in the year-ago period, benefiting from “strong demand, the timing of new product introductions and favorable FX (rates).” Golf operating income jumped 56% in Q1 to $51.0 million from $32.7 million in the year-ago period.
Titleist sales increased in double-digits and saw growth in every category. The year-to-date golf ball business was said to have gained four hundred basis points in unit share at both on- and off-course golf shops with a six point gain in dollars. FO also reported “very strong sales” of both Titleist and Cobra golf clubs. They said Cobra had the best-selling models in Drivers, Fairway Metalwoods, and Irons at on-course golf shops in February. In Woods, the company was up about six points in units and five points in dollars. Irons were said to be “sort of flattish” to “down a percent”.
New products reportedly helped drive record sales for Footjoy. FO said Footjoy is now the number one brand in shoes, gloves, socks, and outerwear.
The company said that increased sales were the result of stronger products, higher consumer confidence and an increase in rounds played over the last five months, but also cautioned that sell-through over the next month will be key. They see some potential issues with higher competitor inventory in balls and clubs in the market, but declined to specify the brand or brands.
The company increased guidance for the year to grow the golf division sales in the mid- to high-single-digit range, up from the low single digit forecast provided at year-end.
