Adams Golf, Inc. had a difficult quarter during the seasonally slow Q3. International sales increases were not enough to offset declines in the U.S., which led to lower gross margins and a widened quarterly net loss. Similarly, growth in the smaller Fairway Woods category was not enough to offset declines in both Drivers and Irons. Though sales to the U.S. were down, sales to Canada increased 1.2% to $2.4 million from $2.3 million last year.
“Our revenue results compare favorably to overall industry performance,” said Chip Brewer, CEO and president of Adams Golf. “According to the National Golf Foundation golf club sales were down 11.8% in Q3 and approximately 9.5% year-to-date. Furthermore, our revenues from on going products, i.e. products not launched in the reporting quarter, were up nearly 8% year-over-year. Lastly, we believe that we remain in a strong financial position with a balance sheet and cash position consistent with where we expect to be on a seasonal basis.”