Acushnet (US:GOLF)2025-11-05 14:30Financial Data and Key Metrics Changes - Acushnet reported worldwide net sales of $658 million for Q3 2025, a 5% constant currency increase year-over-year, with adjusted EBITDA of $119 million, growing by 10% [5][10] - Year-to-date sales reached $2.08 billion, up 4%, while adjusted EBITDA increased by 2% to $401 million compared to the previous year [5][10] - Gross profit for Q3 was $319 million, up $15 million from 2024, driven by higher average selling prices and sales volumes [10][11] - Q3 gross margin was 48.5%, down 50 basis points year-over-year, primarily due to higher tariff costs [11][12] Business Line Data and Key Metrics Changes - Titleist golf equipment grew by 5% in both the quarter and year-to-date, driven by the Pro V1 franchise and successful launches of new products [6][9] - The golf gear segment posted a strong quarter with a 13% gain, and is up 8% year-to-date, particularly benefiting from travel brands [6][9] - FootJoy revenues increased by 3%, supported by successful footwear models and steady glove growth [7][8] Market Data and Key Metrics Changes - The U.S. market grew by 6%, with all segments contributing to the growth, particularly Titleist golf equipment [9] - EMEA experienced a 14% gain in Q3 and is up 8% year-to-date, benefiting from favorable weather conditions [9] - Korea saw a 3% increase in Q3, while Japan experienced a decline of 13% in the quarter and 7% year-to-date [9] Company Strategy and Development Direction - Acushnet is focused on exceeding golfer expectations, enhancing product quality, and executing fitting initiatives [4][5] - The company is committed to capital allocation strategies that drive long-term growth and shareholder value [5][12] - Investments in product development and manufacturing capabilities are seen as key drivers of current growth and momentum [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the consumer and the overall golf market, expecting worldwide rounds of play in 2025 to match or exceed 2024's record [3][4] - The company anticipates low single-digit growth in the second half of 2025, with full-year revenue projected between $2.52 billion and $2.54 billion [15][16] - Incremental full-year gross tariff costs are expected to be $30 million, with efforts to mitigate a significant portion of this impact [16] Other Important Information - The company returned approximately $230 million to shareholders year-to-date, including $188 million in share repurchases and $42 million in dividends [13] - The board declared a quarterly cash dividend of $0.235 per share, payable on December 19, 2025 [13] Q&A Session Summary Question: U.S. sales breakdown between volume and price - Management noted that U.S. sales growth is driven by volume gains in the ball business, with no price increases taken in 2025 [18][19] Question: Tariff impact for 2026 - The expected full impact for 2026 is projected to be just over $70 million, with mitigation efforts in place [22][24] Question: Health of overall golf participation and product reception - Management reported strong engagement in golf participation globally, with positive reception for Pro V1 and T-Series irons [26][27] Question: Sell-through trends at retail - Sell-through for Titleist golf balls has been strong, with favorable inventory levels indicating a positive sales environment [34][35] Question: Changes in retail partner ordering habits - Channel inventories are in line with expectations, with no unusual concerns noted [41][42] Question: Growth dynamics in Europe - The growth in Europe is attributed to healthy rounds of play and effective execution by the team, with fitting initiatives contributing positively [51][52]