FAIRHAVEN – Acushnet Holdings Corp. reported a 3.6% drop in net income in the second quarter of 2019 to $38.9 million, or 51 cents per diluted share, on revenue of $462.2 million, a 3.3% decline over the year.
Sales of Titleist golf balls increased 0.6% to $173.3 million in the quarter compared with the same 2018 period, although on a constant-currency basis, the increase was 2.8%. Titleist golf club sales totaled $107 million in the quarter, a 9.2% decline over the year and 7.1% on a constant-currency basis. Titleist golf wear sales increased 2.2% year over year to $46.8 million. Taking out the effects of exchange rate changes, the increase was 5.2%. Footjoy golf wear sales totaled $114.1 million, a 4.5% decline year over year, but a drop of 2% taking currency issues into account.
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“Through the first six months of the year, our business has been led by nice gains in Titleist golf balls, Titleist gear and FootJoy golf wear,” said David Maher, Acushnet’s CEO and president.
“Our new Pro V1 and Pro V1x models are off to great starts in all global markets, and the Titleist ball count across worldwide professional tours is 73%, more than eight times our nearest competitor,” continued Maher. He also noted that the new Titlist T-Series irons are due to hit stores by the end of August.
The company said that its sales in the United States had increased 1.4% year over year to $256.3 million, while it saw declines in international sales by 8.7%, although that decline was 3.3% on a constant-currency basis, with sales in Korea actually increasing 5.5% removing the effects of exchange rates.
The company recently announced that it had acquired the KJUS brand of sportswear. The company reported $10.6 million in additional property, plant and equipment costs for the first six months of the year, but no business acquisitions were listed for that time. The company reported a business acquisition cost of $2.5 million one year prior and $13.7 million in additions to property, plant and equipment for the first six months of 2018.
The company reported that it paid 14 cents per share in dividends in the second quarter, or $10.6 million on an aggregate basis in addition to buying back common-stock shares worth $6.2 million.
Acushnet Holdings Corp. stock had fallen 5.8% to $23.49 per share as of 12:06 p.m. on Wednesday.
Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.
