Q1 2024 Acushnet Holdings Corp Earnings Call Transcript
Key Points
- Acushnet Holdings Corp reported a strong start to 2024 with a first quarter net sales increase of 4% over the previous year.
- Adjusted EBITDA was $153.7 million, a 4.7% increase from the first quarter of 2023, driven by continued momentum in golf clubs, golf balls, and golf gear.
- The company successfully launched new golf ball models and golf clubs, including the AVX Tour Soft and TruFuel models, and the bulky design SM.10 wedges and Scotty Cameron Phantom putters.
- Acushnet Holdings Corp's North American distribution center startup exceeded expectations, contributing to operational efficiency.
- The company maintains a strong balance sheet with healthy inventory positions, allowing for ongoing investments and shareholder return programs.
- FootJoy net sales declined by 6% in the quarter, with growth in the US offset by declines in international markets.
- The EMEA region experienced a 5% decrease in sales, attributed to an especially wet spring and slow start to the golf season.
- In Japan, sales were down 10% as gains in golf clubs were more than offset by declines in other product categories.
- Korea also saw a 12% decrease in sales, mainly from Titleist apparel declines and poor weather, which delayed the start of their golf season.
- SG&A expenses increased by $14 million or 6% from 2023, due in part to increases in advertising, promotional expense, and information technology related expenses.
Good morning, everyone, and welcome to the Acushnet Holdings conference. My name is Chad, and I'll be your moderator today. (Operator Instructions)
And now I'd like to pass the conference over to your host, Sondra Lennon, Vice President of FP&A and Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining us today for Acushnet Holdings Corp's first quarter 2024 earnings conference call. Joining me this morning are David Maher, our President and Chief Executive Officer; and Sean Sullivan, our Chief Financial Officer.
Before turning the call over to David, I would like to remind everyone that we will make forward-looking statements on the call today. These forward-looking statements are based on Acushnet's current expectations and are subject to uncertainty and changes in circumstances.
Actual results may differ materially from these expectations for a list of factors that could cause actual results
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