Acushnet Losing Sales, Profits & Market Share?

[GolfSpy Barbajo]

Rough 3rd Quarter for Acushnet/Titleist - but is it as bad as it sounds?

 

Can this news possibly help as they prepare to go public?

 

ACUSHNET LOSES SALES, PROFITS AND MARKET SHARE:

 

The Acushnet Company, proud owners of Titleist and FootJoy, reported its 2015 third quarter operating results. Sales came in at $320 million, down $24.4 million from a year ago. Excluding the effects of foreign exchange rate changes, sales were down 1% versus the previous year, according to the company.

 

Acushnet, rumored to be heading to Wall Street in 2016, generated a gross profit of $158.4 million in the reporting period, a gross profit margin of 49.5% and an operating income of $15.9 million, down 49% from the previous year. Approximately two thirds of the operating income erosion was due to foreign exchange rates, it said. Acushnet reported a net loss for the third quarter of $1.846 million.

 

Year-to-date, the company reported sales of $1.182 billion, down $30 million on a reported basis but up 4% on a constant currency basis. It said foreign exchange rates impacted net sales by $74 million. Acushnet reported year-to-date operating income of $155.3 million, up 7%, and a 2015 cumulative net income over nine months of $60.6 million versus $58.8 million in the same period in 2014.

 

“Year-to-date results reflect sustained performance in an industry that continues to adjust to and reflect a new reality. It is expected that as baseline participation, rounds of play and spending per golfer continue to reflect this new reality then everyone's expectations will be adjusted accordingly,” remarked Wally Uihlein, CEO of the Acushnet Company

 

[Jmikecpa]

Not really if it was truly exchange rates.  The dollar has strengthened quite a bit this year to most currencies and with the downturn in Asia, specifically China, then it is not all bad.  I would assume that USD is the functional currency of the company based on the release and the location and that would be the main reason.  I would assume the reverse would have been said a few years ago.  When you sell in a foreign country the sales are based on local currency and then translated back to USD which in a declining currency market can be tough.  My company is headquartered in Kuala Lumpur and I am watching their currency devalue by the day.  Now being the CFO of the US operations.......they like when I make investments in the US simply for the appreciation.  

[NiftyNiblick]

Acushnet needs to solidify it's brand. It doesn't need to emulate Callaway, Ping, or TaylorMade.

 

DT TruSoft is not a sophisticated, Titleist-like name for its high volume ball. Marketing

needs to come up with something that sounds snootier than that.

 

The new metal-woods have numbers on them. This flies in the face of Titleist tradition in the metal-wood era. No numbers was a direct contrast to the other big brands.

 

The game improvement irons have appliqué embellishments on the back. You don't see this from Miura, Hogan, or the boutique brands. You see it from Callaway or TaylorMade--even Wilson from early days fame has followed suit. Titleist was in the past different from them. They should be again.

 

I'm hanging around my house doing nothing. That company needs to hire me. I'll make them, in the words of the Donald, Yoooouuuuge!!!!!!!

[numberonecoog]

Acushnet needs to solidify it's brand. It doesn't need to emulate Callaway, Ping, or TaylorMade.

 

DT TruSoft is not a sophisticated, Titleist-like name for its high volume ball. Marketing

needs to come up with something that sounds snootier than that.

 

The new metal-woods have numbers on them. This flies in the face of Titleist tradition in the metal-wood era. No numbers was a direct contrast to the other big brands.

 

The game improvement irons have appliqué embellishments on the back. You don't see this from Miura, Hogan, or the boutique brands. You see it from Callaway or TaylorMade--even Wilson from early days fame has followed suit. Titleist was in the past different from them. They should be again.

 

I'm hanging around my house doing nothing. That company needs to hire me. I'll make them, in the words of the Donald, Yoooouuuuge!!!!!!!

 

some good points here. I dont necessarily think Titleist needs to be like Miura or Hogan. Titleist should honestly be a "hybrid". Not so boutique that their prices go crazy but not a speedblade like product either with plastic all over. They used to be a hybrid but now hat you mention it I can see the "cheap" things they are doing

[furu]

Acushnet needs to solidify it's brand. It doesn't need to emulate Callaway, Ping, or TaylorMade.

 

DT TruSoft is not a sophisticated, Titleist-like name for its high volume ball. Marketing

needs to come up with something that sounds snootier than that.

 

The new metal-woods have numbers on them. This flies in the face of Titleist tradition in the metal-wood era. No numbers was a direct contrast to the other big brands.

 

The game improvement irons have appliqué embellishments on the back. You don't see this from Miura, Hogan, or the boutique brands. You see it from Callaway or TaylorMade--even Wilson from early days fame has followed suit. Titleist was in the past different from them. They should be again.

 

I'm hanging around my house doing nothing. That company needs to hire me. I'll make them, in the words of the Donald, Yoooouuuuge!!!!!!!

 

Isn't it funny that Titleist is doing the complete opposite of what you're suggesting? Trying to be less players - more for everyone. There's no market in being Miura or Hogan. These brands can never be big. Microbrands can do whatever they want. Titleist need to make money. AP1 and 816H will be money for them in 2016.

 

And TruSoft. Well, it takes the place of Solo. Is "Solo" sophisticated? No. Did they sell millions? Yes. Will TruSoft sell millions? Yes - no doubt. People like the name.

 

Sophistication and stuck up companies do not sell enough products. Simple. 

[NiftyNiblick]

I guess I can only speak for myself.

 

I bought Titleist PT metalwoods and played them for twenty years. They were classy looking.

 

Their new metals look tacky like Callaway and TaylorMade.  Wouldn't touch them.

 

I hate the modern graphics and textured appliqués on non-boutique brand golf clubs.

 

If a main stream brand could make an elegant looking club, I just don't understand why it wouldn't dominate sales.  Must be a generational thing.  Or maybe I'm an enigma--a progressive liberal who's NOT a populist but rather a snob!

[Chris O.]

I guess I can only speak for myself.

 

I bought Titleist PT metalwoods and played them for twenty years. They were classy looking.

 

Their new metals look tacky like Callaway and TaylorMade. Wouldn't touch them.

 

I hate the modern graphics and textured appliqués on non-boutique brand golf clubs.

 

If a main stream brand could make an elegant looking club, I just don't understand why it wouldn't dominate sales. Must be a generational thing. Or maybe I'm an enigma--a progressive liberal who's NOT a populist but rather a snob!

It must be a generation thing because l I think the Titleist woods are definitely the better looking ones out now (which explains why more and more are making their way into my bag...). But to each his own I suppose.

 

 

Sent from my iPhone using MyGolfSpy mobile app

[Jmikecpa]

I guess I can only speak for myself.

 

I bought Titleist PT metalwoods and played them for twenty years. They were classy looking.

 

Their new metals look tacky like Callaway and TaylorMade.  Wouldn't touch them.

 

I hate the modern graphics and textured appliqués on non-boutique brand golf clubs.

 

If a main stream brand could make an elegant looking club, I just don't understand why it wouldn't dominate sales.  Must be a generational thing.  Or maybe I'm an enigma--a progressive liberal who's NOT a populist but rather a snob!

I guess it is subjective and beauty is in the eye of the beholder.  I have their 915 driver and fairway wood in my bag and think they look fantastic.  Also have two of the 913 hybrids as well.

[silver & black]

 

I hate the modern graphics and textured appliqués on non-boutique brand golf clubs.

 

If a main stream brand could make an elegant looking club, I just don't understand why it wouldn't dominate sales.  Must be a generational thing.  Or maybe I'm an enigma--a progressive liberal who's NOT a populist but rather a snob!

 

 

I agree. I appreciate a well executed line that is unadorned over excessive flight of fancy, any day. Maybe that comes from me being a Cabinetmaker, and having an eye for simple, elegant beauty in a design.

[Dhuck Whooker]

It makes sense, the industry is shrinking, their market is guys like me, older gents who like the classic stuff.

 

The serious younger golfer likes Titleist too, but their numbers aren't growing either.