Acushnet Holdings, the golf equipment manufacturer based in Fairhaven, Massachusetts, has announced strong sales for the third quarter. The company’s golf clubs in particular experienced a surge in demand, leading to increased profits.
Financial Performance
During the third quarter, Acushnet Holdings recorded a profit of $57.3 million, equivalent to 85 cents per share. This represents growth compared to the same period last year when the company reported a profit of $51.8 million, or 72 cents per share. Analysts surveyed by FactSet had predicted earnings of 55 cents per share.
Furthermore, Acushnet Holdings exceeded analysts’ expectations for sales, which reached $593.4 million, a 6.3% increase from the expected ~$568 million.
Sales Breakdown
The surge in U.S. sales can be attributed to a 14% boost in golf club sales and an almost 8% rise in Titleist golf ball sales. Higher prices played a significant role in driving these increases. Additionally, sales of FootJoy golf clothing contributed to a 12% gain.
However, Titleist golf gear experienced a decline of 20% in sales due to weaknesses in headwear and golf bags. Acushnet Holdings noted that this decline was primarily due to a challenging year-ago comparison in this particular segment.
Future Plans
Acushnet Holdings’ Chief Executive, David Maher, emphasized the company’s commitment to reinvesting in the business and leveraging the growing enthusiasm for golf.
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