In a filing with the SEC last week, Fortune Brands reported that its Acushnet golf division netted $1.3 billion in sales in 2005, with 70% of the total originating in the U.S. market. Sales of Titleist and Pinnacle golf balls accounted for roughly 40% of sales, while sales of clubs accounted for 30%. Footjoy shoes and gloves accounted for approximately 20% to 25% of sales with outerwear and accessories making up the balance. FO stated that average selling prices were up in almost every category, and over 20% of the companys sales were from new products.
FO is looking for “low single digit” organic growth from the golf division moving forward as rounds of play should increase substantially when baby boomers start retiring.