Acushnet Holdings has recently reported a decline in fourth-quarter sales, largely influenced by lower sales of its Titleist golf clubs and FootJoy golf wear.
Financial Performance
The parent company of Titleist disclosed a fourth-quarter loss of $26.8 million, or 41 cents per share, marking an improvement from the $58 million loss recorded in the same period the previous year. Despite this progress, analysts surveyed by FactSet had anticipated a narrower loss of 37 cents per share. Additionally, total sales decreased by nearly 8% to $413 million, falling short of analysts’ expectations of $429.2 million.
Factors Contributing to Sales Decline
The decline in sales was primarily attributed to reduced demand for Titleist golf clubs and FootJoy golf wear, particularly in the footwear category. However, sales of Titleist golf balls experienced growth due to both pricing and volume boosts.
Regional Performance
Sales in the U.S. took a hit, with a significant decline of approximately 22% in FootJoy golf wear sales and an 18% drop in Titleist golf club sales.
Future Outlook
Looking ahead to 2024, Acushnet aims to achieve sales ranging between $2.45 billion and $2.5 billion. Despite this ambitious target, analysts had anticipated slightly higher sales figures at $2.46 billion.
