Acushnet Holdings Corp (GOLF) Q3 2024 Earnings Call Highlights: Strong Growth in Golf Clubs and ...

In This Article:

  • Net Sales: $621 million in Q3, a 5% year-over-year increase.

  • Adjusted EBITDA: $107 million in Q3, up 9% from Q3 2023.

  • Year-to-Date Net Sales: Over $2 billion, up 3% year-over-year.

  • Year-to-Date Adjusted EBITDA: $392 million, up 4% year-over-year.

  • Titleist Golf Ball Sales: Down 1% in Q3, up 5% year-to-date.

  • Titleist Golf Clubs Sales: Up 19% in Q3, up 9% year-to-date.

  • FootJoy Sales: Down 2% in Q3, down 3% year-to-date.

  • Gross Profit: $337 million in Q3, up 9% from 2023.

  • Gross Margin: 54.4% in Q3, up 240 basis points from prior year.

  • SG&A Expense: $233 million in Q3, up 11% from 2023.

  • Interest Expense: $13 million in Q3, up $4 million due to increased borrowings.

  • Effective Tax Rate: 19.3% in Q3, compared to 16.5% in Q3 2023.

  • Net Leverage Ratio: 1.8x at the end of Q3.

  • Inventory Position: Declined 19% from year-end 2023 and 6% from Q3 2023.

  • Cash Flow from Operations: Decreased year-to-date compared to 2023.

  • Capital Expenditures: $43 million through the first 9 months of 2024.

  • Shareholder Returns: $184 million returned through share repurchases and dividends year-to-date.

  • Full Year 2024 Adjusted EBITDA Outlook: $395 million to $405 million.

  • Full Year 2024 Net Sales Outlook: $2.45 billion to $2.5 billion.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Acushnet Holdings Corp (NYSE:GOLF) reported a 5% year-over-year increase in net sales for the third quarter, reaching $621 million.

  • Adjusted EBITDA for the third quarter rose by 9% to $107 million compared to the same period in 2023.

  • Titleist Golf Clubs experienced a significant 19% increase in net sales during the third quarter, driven by the successful launch of GT drivers and Fairway Metals.

  • The U.S. market showed strong performance with a 6% increase in net sales for Q3 and a 7% increase year-to-date, benefiting from healthy participation and resilient consumer demand.

  • The company maintains a strong balance sheet and cash flow position, with a net leverage ratio of 1.8x at the end of Q3, down from 1.9x in the second quarter.

Negative Points

  • Titleist Golf Ball net sales were down 1% in the third quarter, with expectations of further declines in the second half due to inventory adjustments ahead of new product launches.

  • FootJoy revenues decreased by 2% in the third quarter and 3% year-to-date, attributed to a soft apparel and footwear market.

  • The EMEA region experienced a decline in sales, partially offsetting growth in other regions like Japan and Korea.

  • Interest expense increased by $4 million in the third quarter due to higher borrowings.

  • Year-to-date cash flow from operations decreased compared to the first nine months of 2023, primarily due to decreases in net income and changes in working capital.

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