The following is a summary of the Acushnet Holdings Corp. (GOLF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Acushnet reported Q2 2024 total net sales of $684 million, a 1% increase year-over-year, mainly driven by gains in Titleist Golf Balls.

• Adjusted EBITDA for Q2 2024 was $131 million, slightly down by $1.1 million from the previous year's Q2.

• For H1 2024, net sales were $1.39 billion, with a 2% increase, and adjusted EBITDA also rose by 2% to $285 million compared to H1 2023.

• Gross profit for Q2 2024 was $372 million, up 1% due to higher sales volumes in Titleist Golf Balls, favorable product mixes, and higher average selling prices in Titleist golf gear.

• SG&A expenses for Q2 2024 increased to $246 million, mainly due to IT-related expenses and higher distribution costs.

Business Progress:

• Acushnet has seen significant growth in Titleist Golf Balls and Clubs, with a 7% and 5% increase respectively in H1 2024. The company continues to operate its three Golf Ball production facilities at full capacity due to healthy demand.

• The launch of Titleist GT Metals is expected to contribute positively, with strong early player responses and it being the most played driver in recent PGA and DP World Tours.

• Acushnet's U.S. business grew by 7% in H1 2024, driven by increases in golf balls, apparel, and clubs, amid growth in golf rounds despite challenging weather.

Opportunities:

• The global market growth for Titleist Golf Balls and Clubs presents significant opportunities, with new product launches such as Titleist GT Metals and the upcoming new seasonal collections for FJ and KJUS bolstering market presence.

• The strong positive response to new product launches enhances brand strength and customer loyalty.

Risks:

• Operational risks include managing elevated inventory levels, particularly in Europe and Asia, linked to the slow start in Europe, affected by poor weather impacting early season traffic.

• Market conditions and currency fluctuations pose a risk, as noted in the projection towards the lower end of the revenue outlook range due to these factors.

More details: Acushnet Holdings IR

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