Acushnet Holdings Corp (GOLF) Q2 2024 Earnings Call Highlights: Navigating Growth Amid Market ...

GuruFocus News
4 min read

In This Article:

  • Net Sales (Q2 2024): $684 million, a 1% year-over-year increase.

  • Adjusted EBITDA (Q2 2024): $131 million, down $1.1 million from last year's second quarter.

  • Net Sales (First Half 2024): $1.39 billion, up 2% compared to last year's first half.

  • Adjusted EBITDA (First Half 2024): $285 million, up 2% compared to last year's first half.

  • Titleist Golf Balls Growth (First Half 2024): 7% increase.

  • Titleist Golf Clubs Growth (First Half 2024): 5% increase.

  • Gross Margin (Q2 2024): 54.4%, up 90 basis points versus prior year.

  • SG&A Expense (Q2 2024): $246 million, increased by $4 million or 2% from 2023.

  • Interest Expense (Q2 2024): $14 million, up $3 million due to increased borrowings.

  • Effective Tax Rate (Q2 2024): 23.2%, up from 21.8% last year.

  • Inventory Position (End of Q2 2024): Down 14% compared to last year's second quarter.

  • Capital Expenditures (First Half 2024): $22 million.

  • Shareholder Returns (First Half 2024): $101 million returned, including $73 million in share repurchases and $28 million in cash dividends.

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

  • Full Year 2024 Adjusted EBITDA Outlook: $385 million to $405 million.

Release Date: August 06, 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 1% year-over-year increase in net sales for the second quarter, driven by gains in Titleist golf balls.

  • Titleist golf balls and golf clubs showed strong performance, with sales growing 7% and 5% respectively in the first half of the year.

  • The company experienced double-digit growth in the US market, led by golf balls and FJ Apparel.

  • Acushnet Holdings Corp (NYSE:GOLF) has expanded urethane capacity and improved throughput efficiency in its production facilities.

  • The company is well-positioned for the second half of the year with upcoming product launches, including new Titleist GT Metals and FJ Quantum golf shoes.

Negative Points

  • Adjusted EBITDA for the second quarter was down $1.1 million compared to the previous year.

  • The European market experienced a slow start due to poor weather, impacting sales, particularly in FootJoy footwear and apparel.

  • Excess footwear and apparel inventories in Asia have negatively impacted results in those regions.

  • Currency headwinds have affected net sales, with a $16 million impact in the first half of 2024.

  • The premium apparel market in Korea remains soft, affecting sales in that segment.

Q & A Highlights

Q: Can you provide an update on the health of the golf industry and the initial excitement around your new product launches? A: David Maher, President and CEO, noted that the US market is strong, with rounds up despite poor weather. Europe had a slow start due to weather, and Asia is working through apparel corrections. The new GT Metals launch has generated excitement, with early success on tours, indicating positive momentum for the back half of the year.

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