Adams Golf pointed to new product launches and double-digit growth in two of its three primary sub-segments which propelled the company to 36.0% revenue growth and significant margin improvement for the second quarter ended June 30.

 

Specifically, company management said sales of the recently-launched Idea Black family of products, the Idea a7 and a7 S Irons and Hybrids, and the Speedline Fast 10 drivers and hybrid-fairway woods drove sales for the quarter.


By product segment, sales of Irons surged 41.8% to $23.4 million on strength from the aforementioned Black line of irons and the Idea a7 and 7 OS irons. Likewise, management said close-out sales of the Idea a3 OS and integrated iron sets had also spurred sales for the period. In a press release, Adams pointed out that the company’s year-to-date U.S. dollar share in Irons for On and Off-course Channels was 10.0% of sales, up about 19% year-over-year, according to data supplied by Golf Datatech.


For Fairway Woods, sales jumped 47.1% to $5.0 million on strength from the Idea Black line of hybrids and the Idea a7 and OS hybrid lines and Speedline Fast 10 fairway woods.


For Drivers, a category that has exhibited weakness in recent quarters, challenges continued as the category declined 3.0% $3.2 million despite solid sales from the Speedline Fast 10 driver. Drivers only accounted for about 10% of total sales for Adams Golf, with Irons and Fairway woods comprising the rest. The company said their year-to-date dollar share in Woods for On and Off-course channels was up 5.3% of the market, up about 7% year-over-year.


By region, sales to the Unites States improved 37.6% to $25.4 million from $18.5 million a year ago. Sales to the Rest of the World improved 29.3% to $31.6 million from $23.3 million a year ago. Management said the company remains dependent on two retail customers, which collectively compromised about 23% of total sales.


Cost of goods sold for the quarter decreased to $16.9 million, or 53.6% of net sales, boosting margins substantially. Management said cost cuts primarily occurred as a result of an inventory write-down.


Management declined to give specific guidance for the remainder of the fiscal year, saying only that market conditions in the first half of 2010 are “considerably improved”  amidst a more confident consumer, but that the recovery for the industry “feels modest.”