Acushnet Holdings ((GOLF)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Acushnet Holdings was marked by an overall positive sentiment, driven by significant sales growth in the Golf Equipment segment and robust regional performance in the U.S. and EMEA. Despite challenges such as a decline in FootJoy sales and the impact of tariffs, the company remains optimistic due to strong market fundamentals and active consumer engagement.
Strong Overall Performance
Acushnet reported worldwide net sales of $720 million for the quarter, marking a 5% increase over the previous year. This growth was primarily fueled by the strong performance of the Golf Equipment and Gear segments. Additionally, the company saw a 9% year-over-year increase in adjusted EBITDA, highlighting its solid financial health.
Titleist Golf Equipment Success
The Titleist brand continues to shine, with Golf Equipment sales experiencing a mid-single-digit increase. Notably, Titleist golf equipment sales rose by 10% compared to the first half of 2023, largely due to the successful launch of new Pro V1 golf ball models.
Regional Growth
The U.S. and EMEA regions have been key contributors to Acushnet’s growth, with EMEA revenues rising by 6% in the first half. This growth was driven by increased sales of Titleist Golf Equipment and golf gear, underscoring the brand’s strong market presence.
Positive Market Trends
Despite macroeconomic uncertainties, the golf industry remains robust. The market has welcomed 1.5 million new golfers in 2024, and there has been a 2% increase in worldwide rounds of play in the first half, indicating healthy consumer interest and engagement.
FootJoy Strategy
FootJoy’s strategic shift towards premium performance footwear has started to yield positive results, despite a 2% decline in sales for the quarter. This move is expected to enhance the brand’s positioning in the long term.
Tariff Impact and Cost Management
The company faced approximately $5 million in costs due to new tariff policies, with an anticipated $30 million impact in the second half of the year. Acushnet is actively managing these challenges through supply chain optimization and selective pricing actions.
Asian Market Challenges
While equipment sales in Japan and Korea remain stable, the markets for apparel, footwear, and gear have been softer, affecting overall performance in the region.
Adjusted EBITDA Decrease
For the first half of 2025, adjusted EBITDA decreased by 1% year-over-year, aligning with expectations due to investments in business innovation and technology.
Forward-Looking Guidance
Looking ahead, Acushnet anticipates low single-digit net sales growth in the second half of 2025. The company is focused on mitigating over 50% of the estimated $30 million tariff impact through strategic supply chain and pricing initiatives.
In conclusion, Acushnet Holdings’ earnings call reflected a positive outlook, with strong sales growth and strategic initiatives in place to address challenges. The company’s focus on innovation and market expansion positions it well for continued success in the competitive golf industry.