Adams Golf saw a modest increase in net sales for the first quarter as the company continued to see strength in its hybrid product partner with growth in drivers to more than offset a decline in irons. Additionally, double-digit international sales more than offset a mid-singles decline in sales to the U.S. market. However, increased marketing spend hurt the bottom line, sharply dragging down net income.


Net sales of irons decreased to 59.8% of total net sales for the quarter from 63.2% last year as sales of the company’s Tech OS irons declined compared to the year-ago period.  

 

Net sales of drivers increased to 16.8% of total net sales from 16.1% last year, led by the Insight XTD driver, which was introduced in the first quarter of 2008. Net sales of fairway woods increased to 22.2% of total net sales for the quarter from 18.8% last year. Growth was generated by the Insight XTD hybrid-fairway woods and Idea a3 product comping against last year’s introductions.

 

Sales grew in both drivers and fairway woods “despite supply issues for both the Insight XTD hybrid-fairway wood and driver product which constrained our growth in these product categories,” said Chip Brewer, Adams Golf CEO and president.

 

Though U.S. sales decreased 3.8% for the quarter, net sales to international markets increased 30.1% with sales to Canada growing 30.0% to $3.6 million from $2.7 million last year. Sales to the rest of the world grew 30.3% to $1.2 million from $0.9 million last year.