Acushnet Holdings Reports Decline in Golf Sales
Shares of Acushnet Holdings, the parent company of Titleist, took a hit as they reported a decrease in sales of golf clubs and shoes in the fourth quarter. Despite this, the stock is still maintaining a 34% increase from the previous year.
Fourth Quarter Performance
In the fourth quarter, the company’s sales were reported at $413 million, showing an 8% decrease from the same period last year and falling short of analysts’ expectations of $429.2 million.
The decline in sales was mainly attributed to a significant drop of nearly 17% in Titleist golf clubs sales and a 13% decrease in FootJoy golf wear sales, predominantly in shoes.
Targets for 2024
Acushnet aims to achieve sales between $2.45 billion and $2.5 billion for the year 2024, slightly lower than analysts’ expectations of $2.46 billion.
Insights from CEO
During an analyst conference call, CEO David Maher mentioned that the company’s fourth-quarter results were impacted by an oversupply of golf shoes at retail stores. Despite this challenge, FootJoy has managed to maintain its premium brand status.
Maher highlighted the growing popularity of golf among new enthusiasts who are increasingly opting for premium, custom-fitted clubs and related products.