Fortune Brands, Inc., parent of Acushnet Co., reported slight sales growth of 0.2% for the third quarter, although the Acushnet Golf segment dipped 4.8% to $265.2 from $278.6 in the year-ago period.
On a comparable basis, in constant currency and excluding Cobra, Acushnet Golf division sales were actually up 3% for the quarter. The Acushnet Co. includes the FootJoy, Vokey, Scotty Cameron, Pinnacle and Titleist brands.
Fortune Brands sold Cobra Golf to Puma AG in March 2010.
Geographically, comparable sales for the Golf segment were up at a single-digit rate in both the US and in international markets. In constant currency, sales were lower in Europe but were up in Canada, Japan, Korea and China.
Operating income dipped 43.3% to $5.5 million from $9.7 million a year due to poor weather, the divesture of Cobra and year-over-year investments that were higher than expected. By brand, sales of Titleist golf clubs were up at “a double-digit rate” on continued strong shipments of the recently released AP1, AP2, CB and MB irons as well as demand for Vokey wedges and Scotty Cameron putters. Sales of Golf Balls, boosted by the high-profile Pro V1 line, were “up slightly” during the quarter.
Although FootJoy shoes were down mid-single-digits, management said the company continues to see “very strong acceptance” of the new flagship Icon Golf Shoe as well the FootJoy Sport line and the brand’s successful expansion in to performance outerwear. Gloves and accessories experienced “solid growth” during the quarter.
Management spoke extensively about the company’s growing international presence, particularly in Korea, China, Japan and Australia. The company also pointed to its almost-complete Titleist Ball Plant in Thailand, which is expected to be a key supplement to the company’s Asian markets.
Regarding outlook, management pressed optimism about the upcoming Q4 launch of the Advanced Technology Titleist 910 Driver and other key products. Full year margins are expected to be “a point or so” better than fiscal 2009.
