Acushnet Holdings Corp. reported third-quarter net sales of $558.2 million, up 7.0 percent year over year, or up 13.5 percent in constant currency. The company saw net sales of $1.83 billion, up 5.5 percent year over year, or up 10.5 percent in constant currency terms. Third quarter net income attributable to Acushnet Holdings Corp. was $51.8 million for the period, up 31.8 percent year over year. Third quarter Adjusted EBITDA came in at $86.5 million, a 23.0 percent year-over-year increase.

“Acushnet delivered strong third-quarter results, with constant currency sales up over 13 percent and growth in all segments,” said David Maher, Acushnet’s president and CEO. “These results reflect the strength and momentum of our Titleist, FootJoy and KJUS brands and growing capacity within our supply chain to meet healthy levels of demand. Rounds of play are outpacing our expectations for the year, as golfers across all regions are showing resiliency in both participation and purchasing following record 2021 levels. Mr. Maher continued, “As we look ahead, we are encouraged by the early success of our fall product launches and especially new TSR drivers and fairways, and are enthused about our full lineup of new products scheduled for the first half of 2023. The entire Acushnet team is focused on delivering best-in-class products and services to dedicated golfers around the world. While our business is not immune to currency headwinds and input cost increases, we are confident that our ongoing investments in product development, supply chain excellence and innovation will help us to deliver long-term value for our shareholders.”

Acushnet said the Q3 sales increase on a constant currency basis was driven primarily by higher sales volumes across all reportable segments.

On a geographic basis, net sales in the U.S. were higher primarily driven by increases of 27.6 percent in Titleist golf clubs, 16.2 percent in Titleist golf balls and 39.7 percent in Titleist golf gear. The increase in Titleist golf clubs was driven by higher sales volumes of newly introduced TSR drivers and fairways, Phantom X putters and SM9 wedges. The increase in Titleist golf balls was primarily driven by increased sales volumes of premium performance models. The increase in Titleist golf gear was driven by higher sales volumes of headwear and golf gloves and higher average selling prices across all categories. These increases were partially offset by a decrease of 5.1 percent in FootJoy golf wear, primarily as a result of lower sales volumes in footwear.

Net sales in regions outside the United States decreased 3.5 percent, or increased 10.6 percent on a constant currency basis. In EMEA and Rest of World, net sales increased across all reportable segments. In Korea, net sales increased primarily due to increases in all reportable segments except FootJoy golf wear. In Japan, net sales decreased primarily due to lower sales volumes in Titleist golf clubs due to lower sales volumes of irons and changes in the launch timing of TSR drivers and fairways in this region.

Segment specifics:

  • 8.4 percent increase in net sales (13.3 percent increase on a constant-currency basis) of Titleist golf balls. The increase was primarily due to increased sales volumes of our premium performance models reflecting improvement in certain raw material availability.
  • 13.5 percent increase in net sales (19.8 percent increase on a constant-currency basis) of Titleist golf clubs largely due to higher sales volumes of our newly introduced TSR drivers and fairways launched in the third quarter of 2022 and Phantom X putters and SM9 wedges launched earlier in 2022. This increase was partially offset by lower sales volumes of the second model year irons and hybrids.
  • 27.0 percent increase in net sales (35.0 percent increase on a constant currency basis) of Titleist golf gear largely due to higher sales volumes in headwear, golf bag and golf glove product categories and higher average selling prices across all product categories.
  • 4.5 percent decrease in net sales (2.5 percent increase on a constant-currency basis) in FootJoy golf wear. The increase in constant currency was primarily due to higher sales volumes in the apparel product category, partially offset by decreases in footwear.

2022 Outlook
Acushnet has narrowed the ranges of its full-year 2022 Outlook. The company now expects full-year
consolidated net sales to be approximately $2,225 to $2,250 million, compared to its previous range of $2,200 to $2.25 billion. On a constant currency basis, consolidated net sales are now expected to increase 9.0 percent to 10.2 percent, up from the previous range of 6.8 percent to 9.1 percent. The company now expects full-year 2022 Adjusted EBITDA to be approximately $325 to $335 million, compared to $325 to $345 million. The company’s outlook assumes no
significant worsening of the COVID-19 pandemic, additional supply chain disruptions or changes in the impact of foreign currency. The company plans to share additional details of the 2022 Outlook during its investor
conference call.