Adams Golf reported second quarter net sales fell 30% to $23.3 million from $33.3 million in the year-ago period. Management for the golf club manufacturer said sales were negatively impacted by contractions in market demand, competitive pricing and a promotional environment and the fact that the company was between product introductions during the quarter.
Second quarter figures also included a $3.6 million non-recurring charge to cost of goods sold for a write-down of inventory.
Net sales of products outside the United States decreased to $4.8 million, or 20.6% of total net sales, from $8.0 million, or 24.1% of total net sales, for the three months ended June 30, 2009 and 2008, respectively. Net sales resulting from countries outside the United States and Canada decreased to 4.1% of total net sales for the three months ended June 30, 2009 from 7.2% for the comparable period of 2008.
By product segment, net sales of irons decreased to $16.5 million, or 71.1% of net sales, as compared to $22.2 million, or 66.7% of total sales in the year-ago quarter.
Fairway woods decreased to $3.4 million, or 14.4% of total sales, as compared to $8.5 million, or 25.6% of total sales a year ago.
Drivers decreased to $3.3 million, or 14.2% of net sales, from $3.5 million, or 10.6% of sales, in the year-ago period.
Cost of goods sold increased to $20.5 million, or 88.1% of total net sales, for the quarter from $19.5 million, or 58.7% of total net sales, for the comparable period of 2008. The company attributed to increase to the inventory write-down to lower of cost or market totaling $3.6 million coupled with increased promotional programs during the quarter.
During a conference call with analysts, management cited a Golf Datatech report, which indicated that Adams YTD dollar market share in irons and woods were up 8.4% and 4.9%, respectively.
