SRI Sports., the new parent company to Srixon and Cleveland Golf, had a strong first three quarters of fiscal 2008 as the addition of the Cleveland business to the sales numbers has more than offset minor declines in smaller divisions. Nonetheless, the company has maintained overall organic sales growth for the year-to-date through the third quarter.
For the third quarter, Cleveland sales amounted to ¥2.3 billion ($21.4 mm). Overall SRI Sports sales 18.0% to ¥16.4 billion ($152.4 mm) from ¥13.9 billion ($118.0 mm). Excluding the boost from Cleveland, net sales would have increased 1.4% for the quarter. Growth in golf offset a 5.6% decline in Tennis sales to ¥1.7 billion ($15.8 mm). Golf sales jumped 24.1% including the Cleveland number, but still grew 3.6% on an organic basis. Including Cleveland, third quarter Golf sales totaled ¥13.9 billion ($129.1 mm). Clubs sales increased 8.6% to ¥6.3 billion ($58.5 mm) from ¥5.8 billion ($49.2 mm). Balls sales were flat at ¥3.1 billion ($28.8 mm). Shoes/Accessories, sales declined for the quarter, though, down 4.3% to ¥2.2 billion ($900,000).
The company reported that net sales the first nine months of fiscal 2008 jumped 35.7% to ¥57.0 billion ($539.0 mm) from ¥42.0 billion ($351.9 mm) last year. For the same period, golf sales jumped 42.2% to ¥48.9 billion ($462.6 million) from ¥34.4 billion ($288.3 mm) last year. However, ¥12.3 billion ($116.4 mm) of the increase comes from the inclusion of Cleveland Golf. Excluding Cleveland, net sales increased 6.4%. Net income for SRI Sports jumped 38.9% for the year-to-date to ¥3.0 billion ($28.0 mm) from ¥2.1 billion ($17.9 mm) last year.
