Acushnet Holdings Corp., parent company of the Titleist and Footjoy brands, reported that consolidated net sales for the fourth quarter increased 6.4 percent, or 14.3 percent on a constant-currency basis. The increase was said to be primarily related to an increase in Titleist golf clubs, driven by the newly introduced TSR drivers and fairways, an increase in Titleist golf balls primarily due to higher sales volumes across all models and an increase in Titleist golf gear primarily due to sales volume increases in golf bags and headwear.

On a geographic basis, consolidated net sales in the U.S. were higher for Q4, driven by increases of 31.1 percent in Titleist golf clubs, 14.7 percent in Titleist golf balls and 15.6 percent in Titleist golf gear. The increase in Titleist golf clubs was primarily driven by higher sales volumes of TSR drivers and fairways introduced in the third quarter of 2022. The increase in Titleist golf ball sales was reportedly driven by increased volumes across all models. The increase in Titleist golf gear was said to be primarily driven by higher average selling prices and higher volumes of golf bags and headwear.

Net sales in regions outside the U.S. decreased 4.2 percent, or up 12.3 percent on a constant-currency basis. In Japan, net sales increased due to higher sales volumes in Titleist golf clubs primarily due to our newly introduced TSR drivers and fairways. In Rest of World, net sales increased across all reportable segments. In EMEA, net sales increased across all reportable segments except Titleist golf clubs. In Korea, net sales decreased primarily due to lower sales volumes in FootJoy golf wear and lower sales volumes of products that are not allocated to one of our reportable segments.

Segment Specifics:

  • 6.3 percent increase in net sales (12.1 percent increase on a constant-currency basis) of Titleist golf balls, largely due to increased sales volumes across all models;
  • 21.9 percent increase in net sales (32.1 percent increase on a constant-currency basis) of Titleist golf clubs primarily due to higher sales volumes of TSR drivers and fairways launched in the third quarter of 2022;
  • 16.1 percent increase in net sales (26.2 percent increase on a constant-currency basis) of Titleist golf gear primarily driven by higher sales volumes in golf bags and headwear reflecting improvements in supply chain constraints; and
  • 6.5 percent decrease in net sales (0.2 percent increase on a constant-currency basis) in FootJoy golf wear. The increase in constant-currency sales was primarily driven by a sales volume increase in apparel largely offset by lower sales volumes in our footwear and glove categories.

The company said the net loss attributable to Acushnet improved $26.3 million to a loss of $0.1 million from a loss of $26.4 million, primarily as a result of an increase in income from operations due to higher gross profit and lower operating expenses. Gross profit increased primarily due to increased sales volumes in Titleist golf clubs and Titleist golf balls and lower inbound freight costs, partially offset by the unfavorable impact of changes in foreign currency exchange rates. Operating expenses decreased across all reportable segments primarily due to lower advertising and promotional expenses and employee-related expenses.

Adjusted EBITDA was $25.4 million, compared to a loss of $5.0 million in the prior year. Adjusted EBITDA margin was 5.7 percent for the fourth quarter versus (1.2) percent for the prior year period.

“As we continue to build momentum across our brands, we are pleased to report the Acushnet team delivered another strong year in 2022, including healthy acceleration in Q4,” said David Maher, Acushnet’s president and CEO. “The company’s commitment to product development, manufacturing and supply chain excellence contributed to growth across all segments and regions, leading to an 11 percent constant currency sales increase in 2022.”

Maher continued, “Titleist golf balls continue to be the overwhelming choice of PGA and LPGA Tour players, and Pro V1 golf balls were the winning choice of all four men’s Major Champions in 2022. We are pleased with our ability to grow sales in this segment despite raw material availability challenges during the year. Double-digit sales growth in our Titleist golf club, Titleist gear and FootJoy golf wear segments was driven by a wide range of innovative new products, including new TSR drivers that quickly became the most played model on the PGA Tour.

Consolidated net sales for the full year increased 5.7 percent, or 11.2 percent on a constant-currency basis, primarily as a result of higher sales volumes and higher average selling prices.

On a geographic basis, full-year consolidated net sales in the U.S. were higher driven by increases of 17.2 percent in Titleist golf clubs, 4.9 percent in Titleist golf balls, 4.7 percent in FootJoy golf wear and 10.3 percent in Titleist golf gear. The increase in Titleist golf clubs was primarily driven by higher sales volumes of SM9 wedges, Phantom X putters, T-Series irons and newly introduced TSR drivers and fairways. The increase in Titleist golf balls was said to be primarily due to higher average selling prices and higher volumes. The increase in FootJoy golf wear was reportedly primarily driven by higher average selling prices of footwear and higher sales volumes of apparel. The increase in Titleist golf gear was primarily driven by higher average selling prices across all product categories.

Full-year net sales in regions outside of the U.S. were up 1.9 percent, or 13.5 percent on a constant-currency basis. In EMEA, net sales increased across all reportable segments, with the first quarter of 2022 having the largest increase due to the adverse impact of government-ordered shutdowns in this region during the first quarter of 2021. In Korea and Rest of World, net sales increased across all reportable segments. In Japan, net sales increased in FootJoy golf wear and Titleist golf clubs.

Segment Specifics:

  • 1.7 percent increase in net sales (5.7 percent increase on a constant-currency basis) of Titleist golf balls, largely due to higher sales volumes and average selling prices. Sales volumes were negatively impacted by certain raw material availability;
  • 10.5 percent increase in net sales (16.3 percent increase on a constant-currency basis) of Titleist golf clubs. This increase was largely due to higher sales volumes of our SM9 wedges, Phantom X putters, T-Series irons and TSR drivers and fairways. This increase was partially offset by lower sales volumes of hybrids which were in their second model year;
  • 6.4 percent increase in net sales (12.5 percent increase on a constant-currency basis) of Titleist golf gear. This increase was largely due to higher average selling prices across all product categories; and
  • 6.4 percent increase in net sales (12.2 percent increase on a constant-currency basis) in FootJoy golf wear. This increase was largely due to increased sales volumes across all product categories.

Net income attributable to Acushnet improved by $20.4 million to $199.3 million, up 11.4 percent year over year, primarily as a result of an increase in income from operations. Adjusted EBITDA was $338.4 million, up 3.1 percent year over year. Adjusted EBITDA margin was 14.9 percent versus 15.3 percent for the prior year period.

“We are encouraged by healthy golf industry fundamentals, with the U.S. golfer population increasing again in 2022 and with similar trends in key regions outside the U.S., ” said Maher. “Looking ahead to 2023, we expect to continue our story of growth across all brands and regions, fueled by an exciting lineup of new product launches. Our new Pro V1 and Pro V1x models are the next generation of the most trusted golf balls in the game. TSR drivers and fairways are off to a great start in the market and Scotty Cameron Super Select putters will launch later this month. FootJoy, Titleist gear and KJUS will all feature product updates and exciting new innovation stories in 2023.

Photo courtesy Titleist