Acushnet (GOLF)2023-11-03 21:30Financial Data and Key Metrics Changes - Acushnet reported third quarter sales of 99 million [28] - Year-to-date net sales were up 10% to almost 378 million [28] Business Line Data and Key Metrics Changes - Titleist Golf Clubs sales increased by 18% for the quarter and 17% year-to-date [34] - Titleist Golf Balls were up 6% in the quarter and 16% year-to-date, driven by new Pro V1 and Pro V1x models [55] - FootJoy sales increased by 3% in the quarter, primarily due to apparel, but were flat year-to-date [31] - Titleist Golf Gear saw a decrease of 19.9% in the third quarter compared to the previous year [43] - Gear sales were down 20% in the quarter but up 9% year-to-date [35] Market Data and Key Metrics Changes - The U.S. market showed strong performance with rounds of play up 4% year-to-date, contributing to an 8% growth in the third quarter [32] - Year-to-date sales in EMEA were down 1%, while Japan was up 9% and Korea down 2% [36] - Golf ball and club sales increased in all regions, but footwear and apparel sales were soft in Korea [36] Company Strategy and Development Direction - The company is focused on high-performance, high-quality golf products and is investing in customization and distribution capabilities to create operating leverage [18][40] - Acushnet plans to launch several new models in early 2024, including new T-Series irons and golf balls [37][38] - The company is maintaining its revenue outlook for 2023 between 2.4 billion, reflecting continued momentum in golf ball and club categories [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the golf industry, noting increased participation and consumer spending in the U.S. market [65][84] - The company acknowledged macroeconomic concerns but remains optimistic about the sport's resilience and growth potential [84] - Management indicated that the golf industry is at a seasonal low point, with inventories generally healthy but slightly elevated in footwear [88][89] Other Important Information - The effective tax rate for Q3 was 16.5%, down from 22.9% the previous year [48] - The company completed the issuance of $350 million in senior unsecured notes to enhance liquidity [50] - Year-to-date cash flow from operations increased significantly, primarily due to changes in working capital [51] Q&A Session Summary Question: Impact of price change on Pro V1 - Management noted that the price change for Pro V1 has settled in well, with strong sell-in and sell-through performance [8] Question: Revenue guidance and uncertainties - Management acknowledged the wider revenue guidance range compared to last year, attributing it to uncertainties in the market [11][12] Question: Retail inventory and footwear - Management indicated that overall inventories are healthy, but footwear inventories are heavier than ideal, working through the inventory cycle [88][89] Question: Competitive landscape and smaller players - Management takes competition seriously but does not see significant disruption from smaller players in the golf ball segment [112] Question: Future investments and share repurchase plans - Management expects to revisit the remaining share repurchase authorization in the first half of 2024 [109]