The following is a summary of the Acushnet Holdings Corp. (GOLF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Acushnet reported Q3 net sales of $621 million, a 5% year-over-year increase, and adjusted EBITDA of $107 million, up 9% from the previous year.
Year-to-date net sales surpassed $2 billion, an increase of 3%, while adjusted EBITDA rose by 4% to $392 million.
Third-quarter gross profit reached $337 million, up 9%, with a gross margin of 54.4%, an improvement of 240 basis points from the previous year.
Business Progress:
Titleist Golf Clubs experienced a significant 19% sales increase in Q3, driven by the launch of new GT drivers and Fairway Metals.
Titleist Golf Balls maintained positive feedback and production transition in anticipation of new Pro V1 model launches.
FootJoy is transitioning production lines to a new facility in Vietnam, aiming for enhanced innovation and speed to market.
Opportunities:
Continued U.S. market strength with Q3 net sales up 6% and year-to-date up 7%, coupled with robust consumer demand across all segments.
FootJoy's transition to a new production facility in Vietnam reflects a strategic initiative to foster innovation and address market demands more effectively.
Risks:
Expected decline in Golf Ball sales in Q4 due to the life cycle of products which may impact overall performance temporarily.
FootJoy experiences a decrease in sales by 2% in Q3 and 3% year-to-date, marking challenges in the soft apparel and footwear markets.
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