GOLF - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Acushnet Holdings Corp First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] Thank you.

hand Lennon, over Investor Vice go to for your Relations, like ahead. Sondra today President, now the to conference speaker please I'd FP&A and

Sondra Lennon

Acushnet joining everyone. Call. today you morning Quarter for Good for Earnings Thank our Holdings Conference First XXXX us

this David Maher, Pacheco, Officer; Tom and Executive our morning are me Chief Financial President our and Officer. Joining Chief

statements forward-looking changes Before expectations. are to These that we everyone like to I turn remind current today. Acushnet's the on uncertainty from Actual call call be based over may statements making expectations to forward subject these the differ materially looking David, in I would are results on will and circumstances. and

contemplated In scope Due to impact statements. our and significant of and There particular having is plans impact. as the company's of is new its differ results about events change, or forward-looking be ultimate of Reported pandemic a on because materially whether actual obligation an not undertakes other of as factors duration statements the these indication this or operations. at uncertainty revise considered significant publicly of our should circumstances update The could pandemic by and this business from information, performance. results to no required. time, the company any COVID-XX the and could those future except forward-looking nature future dynamic our results

revenues see currency today's making Securities financial this EBITDA, filings the constant Throughout of that our to and will results release, factors differ, could such press including list we items be Commission. a adjusted please that actual discussion Exchange For US as metrics, presentation non-GAAP accompany at cause slides the and with and reference our to

also when in these year-on-year please Securities we're sales sales presentation and with why that referring March schedules comparisons, to metrics regional Please comparable Explanations this the note, accompany three ended currency. slides Exchange can referring we and note items in are and period. period found be use and of month And filings the segment in when also these of a or US to press that today's the GAAP how referring XXXX, release, basis to month the increases Commission. reconciliations and and three constant and we results the to referring to that decreases, in XXst, year-to-date our

that, I'll to With the call turn David. over

David Maher

and morning, Good team On Sondra. through your we your of and way make you everyone. Acushnet trying you these Thanks, safe hope the positive, behalf families are that while staying times.

had the XXXX the associates. dedicated twice our and as protected XXXX of saved spirit ball manufacturing great I in to golf. and withstood golf we the especially resolve that hurricanes associates significant hurricanes, in would As from our the impact number earnings, designing communities. and and business profound our and recognize COVID-XX wars, dream thanks process the The in are Acushnet events XXXX, other families, business ball first ruin in like of the trade pandemic associates, one our first Young's challenges, their entering Phil report founder ball to Since and of history quarter our company the has on partners recessions has our

experiences, As and appreciative of resilience the recent more have Acushnet's a even become families I result of agility. entire

emerging health begin navigate see in through crisis how golf provide best how world. our clarity and and the game industry about sudden the business the developed, steps adapted crisis market this safe position Acushnet's passage in preserve are to financial are COVID-XX the to over to health we work past disruptions create and Tom's of objectives the global for we the this Acushnet protect environments global impacted understanding respond and months, Acushnet this and to leadership As has and golf Company's outline positions. taking to and a safe post-pandemic teams frame quickly call company's my to order

quarter, month signs recovery. initially When while Korea when back gone over to with week, first its spoke of call, quickly Korea team our effects And Asian did limit we in last would delivering to the largely not months, virus retail virus past in be our hit, results April levels. looking the to mobilized past contain resilient the our phases were May the at first initial golf of arriving significantly have as pretty markets, impact April, forecasted quarter the we before to [indiscernible]. the on as business with take up that country extent Korea expectation distinct was isolated started to most projected market several has normal climbs the XX% of and economic been early a be it the And to through has the see the The back at two strong rounds of play our over through and golf impacts.

stable was Golf The fairly the market in quarter. Japan first

more golf courses golf most quarter home stay the While orders retailers will operational, recently second remain challenging. be that extended suggest at and

this phase and minimal. has this to The been of disruption anticipated, piece was initial as other chain our supply

operations Our factory weeks, been fully mid-March. was in since February, and under shoe for was quarantine venture the after in joint five China operational it while closed country resuming has

the industry impact the soft II pandemic's golf of supply America challenges mid-March started North goods the to Europe. and specific operations began been as our chain when a whole, have in to in across more manageable. virus Additional Phase impact mostly directly

health understandably as on not period. very golfers sharply golf shops focused declined doors. equipment on challenging retail and on golf activity stores course golf during temporarily and this to purchasing retail were safety required Furthermore, Golf their and most were close

operations and activity these suspended. Since most reduced European in two regions significantly. production result, golf at a our As and mid-March, distribution of been US have traditional retail centers facilities

during also Our time. now week since Club centers ball suspended this operations their plants embroidery their Xth War been Massachusetts ball II. assembly shutdown, are our World longest of on custom and have

gear, are fulfilled our businesses We mainly FootJoy to from have been much and located partners these remained operational. XPL have maintain states that of able with in as BXC fulfillment

of the Globally, normal our vision effort. Titleist doing been open, the US has what COVID-XX ball wide have of the the the manage that plant to in commitment sourcing safety, operating a apparel the organization we glove from to In crisis, responding From has an peak and long-term with short-term can to remained expenses factory our associate helped cushion by shaped levels. and decisions aggressively standpoint, chains and health and are loss actions mitigate importance supply production functioning to are relief has compatible our these and principles Thailand plants during at our X the also our Thailand in need ensuring remained ball of gear open. which support to its challenges,

the have taken passage. steps Acushnet's of will Tom outline to safe we navigate several

planned note, after As of have a February all and extensive QX. which QX, reduction will you achieving been a they in came reduction in expenses XX% planned XX% in

in has we our the majority a expect This I to While been past difficult accounted that report work some implemented call program organization. resumed. of the been and as have in comprehensive process have furlough to you able very the reductions A&P areas am we of would throughout where for temporary these associates in weeks, glad savings, also has back a

several this back leadership over hopeful gradually work process the is next priority associates returning weeks. accelerate we Safely our our will teams’ highest to that and are

addition, of worldwide of pandemic on our ensure in carefully been global as up-to-date inventory from the most golfers we dedicated to sync our our options earliest their the trade several In the weeks supply days past positions the good adapt has that our meet work over future increase is modify will focused believe team expectations. partners. We evolving best with plans managing needs forecast to the and and

see first two impacts phases industry Having outlined and on the business. of golf what Acushnet's the we is

and now phase X, the are reopening courses We golf of the the of commerce. retail which is return widespread of and gradual in reopening golf stores

are ball embroidery in club health with safety manufacturing requirements. weeks the operations coming We for and compliance our to all resume assembly in prepared and

under lag to located The of plans reopening of days. other which Massachusetts at either for in know, home reopen courses play reopened announced open majority the As now states. and facilities or XX with states in orders great in US production our are whose coming are California, may you the having schedules and remain golf stay XX

game as this affirmation healthy a and see We the and of as beneficial endorsement recreational activity.

reported wave April regulations their up social and have shipments was the limited ideal, regions month. that And play While process eased week distancing in been safely economies. as states for of increased golf trade more ramping and to Massachusetts this strict of staffing And levels many allow a during with the to rounds reopen have here resume saw more of open weather not week, are we retailers last guidelines. earlier in

will Golf from if the progress And of that capabilities. meaningful custom resume able be end represents some expand to and ball month manufacturing While this and limited, this are US all hopeful making levels. our processing club we ball we by April not

are re-engineer operate work that productive our to timing. done environment regulations Again, Our for work teams remains have and and there workflow, around adhere, optimistic create to to uncertainty safe social acknowledge and the prepared cautiously a good distancing associates. safely to we yet

and when the earlier, across which our difference committed close the relief making to effort. the in a capabilities knit As Acushnet industry. of our these has communities crisis challenging entered in priorities work team mentioned to help and times, we use one Through this the live we I golf to was in

for be with off in our pleased brand XXX,XXX last and PPE to weeks, shields components and a to just to challenge we the lifetime am associates experiences out donating over you few golf a Titleist rose and played some of local our to involved. share rewarding what auctioned the FootJoy face manufacturing I workers. once experience face ambassadors, and the generosity masks in help with and And all XX hospitals other for health-care front-line that of

efforts donated of company contributed my and unemployed this Lastly, our in $XXX,XXX and than for make out publicly their in valued to I date, we result live to commitment positive sales a as a difference. work become ambassadors workers of associates they the have and of we weeks, which like has set relief crisis. sense our communities golf the purpose to who recent would and industry more to in online and the portion thank as fellow a

ramps to post-pandemic to believe months, be appeal outdoor game this these in given for continue retail while As the the golf's impacted our followed we second we of being same the well an robust Along April its quarter up challenging, we now as bodes May term, in recovery will we operations. social we back of for short incremental the positioned field with most distancing. within the are summer the that play significantly encouraged golf expect the and industry, business and embedded improvements June the by lines, ahead golf In is we recent company will long-term. world and ease our look expect the resume beginnings to be by well

at pace impacted seen, spending remains retail to does be as over XXXX. consumer the which be degree of the course will resumes to activity The which

as a as increased which months remains seen it to recovers. in look long operations, the also the lastly, We remains new coming activity are extent what will our affected by to of stores the bracing our be will reopen safety COVID-XX forward promotional output be manufacturing and we for as regulations in for while market place return be threat. levels And to

around provide the further will to weeks coming we the and full become guidance at which time answers clarity months expect these to clear questions year outlook. and plan in our We

upon conclude record of on times, opportunity. reaffirming through term trade by our these track I partners challenging safety a as associates total proven and to investment will return compelling well-being the for the and our prepared focus and commitment leading providing with build shareholders company Acushnet's our we my remarks long

With over the to now Tom. I will pass that, call

Tom Pacheco

would agility the throughout too partners David shown trying and has to that our impact the and COVID-XX recognize like time. has communities everyone their our had the morning on on families, resilience team good Thanks, to associates, call. and trade this our and I

of QX X, Slide $XXX were X% basis. versus down on net down Starting year currency million, on and last a constant sales consolidated X%

sharp segments was all XX% million compared mid-March the through by David quarter. of performing QX offset or XXXX. our were over million Adjusted or but the down weeks for declines quarter, mentioned, performance ahead of the were EBITDA two to $XX our As and tracking $XX well last expectations, at this was

XX%. Moving Slide to results were golf our down Titleist on X, segment balls

wedges up the X%, pleased decline bags, Flex Vokey and T-Series was as launches Velocity, down non-Pro strength Cameron X a successful While And the apparel shoes was V were on on Tour and is and in as of and which year Gear SMX X a strong down a and launches golf XP clubs golf TS Metals were spring sell-through putters, Soft finally, with of to launches gloves, which showing good from we the well expected year-over-year. ProISL, Golf of were after well X% of the X%. received. AVX, of Special despite a were Titleist up solid start and year, Titleist irons. FootJoy the Tour of Golf Wear golf XX% deliveries Select

continued geographic shoes, market in results our impact our X, was year-on-year, despite was its second January region levels. EMEA X% environment all to to challenging XXXX. was with And finally, of the from down X% quickly QX included played recovered of Shifting was and inventory on across up increases from elevated Japan retail February. the X% all V the X% as and down year-on-year, Korea disruption. be in results in decreases in as with up was Slide US the COVID-XX not primarily in the model year Pro X segments was which rounds

and cost Gross year was profit and XX few our million basis $XXX result actions decrease lower primarily Slide million gross and production $XX million, sales a to in the during XXXX profit our items in were statement our or gross reduction decreases there QX overall X% of quarter. versus is as QX expense million, XX.X%, significantly a the to margin was margin XX% I like XXX down was are volumes. The was by last compared points. $XXX SG&A driven QX, would in down highlight. or down $X gross than and income expectations, and

business refine improve first operational During and the to our program efficiencies. a quarter, management approved restructuring model

result, and provided the voluntary million benefits to a both As charge associates programs. a reduction recorded $XX workforce included company in for restructuring involuntary of

was million impact to Operating from borrowings. outstanding compared last Interest charge year, the QX million $X average XXXX. of $XX income $X in $XX the interest which restructuring on was expense million, million negative $XX includes down lower reflecting million rates

effective primarily Our to income And Holdings jurisdictional to by XX% from ' in our rate down of effective $XX tax income taxes, QX year. a the US, compared almost XX. increase to income XX.X% net shift the tax tax was The million in discrete as expense lower was QX $X in but rate last driven on by our before $X was mix as was in finally, profit well XXXX. compared negative attributable away items Acushnet million, million

for have On EBITDA reconciliation to of provided Slide XX, a two we net income items There are here. QX. highlight to adjusted

included The first the extraordinary other $X.X the add-back items is EBITDA the both is which COVID-XX agreement. credit restructuring for is net. consistent items the These and expenses add-back the of of adjusted or second the charge of in item unusual million, related are non-recurring line definition our in QX with

benefits spoiled support paid raw material back salaries shutdowns, work of government-mandated safety incremental work not to paid to add health cost equipment. who furloughed remote COVID-XX the for cost and benefits and additional the costs, clarity, For include could for due associates and associates,

XX unrestricted March to on we had at Moving about $XX cash of XX, hand. XXXX, Slide million

this the months. unrestricted our of be time, and at we cash debt ratio had cash the down for credit outstanding to and on million. total On million X.X facility hand our credit will available leverage was we Our April to our Including was borrowings available we requirements to maximize and drawdown, meet flexibility, approximately on next bolster million under drew that $XXX liquidity borrowings facility. and our our approximately our revolving cash XX our $XXX revolving least $XXX Xst sufficient position At times. believe

of QX of at QX of end million drop we $XXX the a accounts receivable XXXX at often of of normal, $XXX and end was XXXX to of first at compared result million, in at end the end is increase lower than the was the million sales but The XXXX anticipated $XXX seasonally the of the Consolidated XXXX. quarter. quarter the QX as

sales inventories the and million the XXXX, QX Consolidated to needed. closely were at million $XXX with payment partners QX, of we and million XXXX of consistent $XXX extend same where were of end with compared last Our outstanding the the have $XXX end to been at XXXX. period our QX terms at days working year end

with the first accounts the normal, As of lower in end the the than quarter at receivable, XXXX in decrease change we is seasonally was expected. also inventory of but

to Overall, levels Our are ensure managing our remain amount accounts at and team closely time. supply this chain of is our inventory and and production doing schedules appropriate. inventory good we composition with comfortable our receivable the the quality of work worldwide our

respective first the of for an increase QX million primarily essentially was improvement operations $X compared XXXX, outflow the of XXXX. of the flat first The a driven capital million, outflow for working an balances XXXX from in first $XX periods. to $XX quarter in of was an improvement was in flow was Cash million. smaller of by of quarter XXXX CapEx the $XX million quarter compared to which

closely are of expect We second CapEx XXXX. currently year CapEx the quarter the monitoring full our the and to be for for lower balance year XXXX and than

David a QX, of significantly capital describe business management reducing include our our our payroll our senior our and actions will expenses receipts costs, restructuring which several precautionary compensation, advertising we spending in temporary and These adjusting shortly. for travel, through discussed, associate and suspending to the including costs Board have took actions expenditures, and and retainers reducing allocation discretionary furloughs reduction reducing manage capital steps planned in selling cash Directors I we all steps As inventory costs and cash. taken promotional reduce

QX time credit. available cash XX% of while the achieve reduction in a a in QX, use our reduction the we these As and same minimizing a result expenses achieved planned in to XX% at of expect we and steps, operating

allocation Turning Slide changed, allocation not to have the capital our term. adjusted plans we have although long-term capital on our for priorities XX, short

expect to full time shares market CapEx approximately XXX,XXX our total purchased had be during lower we than XXXX. $X share we program. open repurchase million. approximately March, mentioned, just As for the suspended I that year At in we XXXX currently a of In QX

On the $X.XXX shareholders approximately of Board million dividend per dividend committed previously QX The of share paid is $XX our to a today, dividend about XXXX, QX million. declared its the and a shareholders. dividend company $XX and based totaling over a Directors of March the to announced time. long of would term that approximately on paying on return will to company cash economic Decisions X; June future represent XXth this payable on June at record market payments conditions be XX,

to turning Finally, guidance.

mentioned, expect golf April by QX that impacted of June. May the be we in the we will David are As recent with by being and encouraged challenging, beginnings significantly improvements industry, most while the within recovery our incremental followed

great of the we the levels. not to a return resume, be is regarding our uncertainty to manufacturing provide have uncertainty their impacted time. retail elected at on forward, our degree Based to operations Going and which to ability there deal consumer normal this will which spending at will this pace activity guidance

to our quarter provide updated will our you view closely and second on We call. earnings situation continue will changing rapidly this monitor with

to to a and throughout the the the challenging positions XXXX golf be maintain confident market environment steps industry into leadership enable position the In have we company's us appropriate conclusion, to liquidity in, taken although disrupted protect are financial to our we clearly operate be will for us future. to and will continue

over I for will the that Sondra turn call Q&A. With now to

Sondra Lennon

open we up questions? for Tom. could lines now Operator, Thanks the please

Operator

Greenberger open. with Kimberly Stanley, your is [Operator line Morgan Certainly. Instructions]

Kimberly Greenberger

revenue growth And seeing bit - you're as that, that see to you March back sort any did Europe. about what then until so there in you North little geographical in change quarter, emerging. And terms numbers decline mid-March? put of the there were. a any of mid-March first you in in Is I ask trajectory talked are revenue growth what about then it April, up great. half the revenue of any And update the here America, in are revenue or big Thank wanted what in Okay, much. was could you just around from differences

at you gets at if to that because And one look normal of that to your the current tied your back is the factors at open mitigating America appears much. can normal. do contour back in that that it's be largely the which Thank golf recovery least business could think industry that you this or North are more limit to to business, you so time sooner what

Tom Pacheco

I'll what it take of and we're question David the of QX seeing and Kimberly, the think about will to some some relates Good I add April in that and color - part morning, first geographies. as

two tracking get played As and the the plan. at it- of trajectory - good to XX end our things into a while And either as America businesses where particular The in QX, weeks it lower on in good, North our we quarter. we or numbers in all than or started the the to we through up last so, where were specific rounds first ended really was into coming trajectory our can businesses relates in did really won't in data revenue off impact see, the weeks of ahead you all expectations of in feel were is up when quite Europe.

David Maher

had global and at first - if ladder, the I'll the Korea the second question we look we like it differences address Kimberly, geographic of piece - If top. some we're might being if morning. your we Good seeing. a

recovery and I of play. rounds early mentioned, in made February, As they quick to March, several we near They have XX%, months expected close would market a were functioning ago. disrupted up that as are late

to near-normal any quickly levels climbed as as they've market seen. we've as So, back

QX. Next has at fairly stable is I Japan through earlier, which been operating a said pace

weeks as country of enacted in home stay their to consumer a some seen at have that pullback extensions recent We bit orders.

the - a game right and of Where we all, golf lot interest significantly we in reach terrific then the now where Then do shops, largely as come a more golf from were But US shops indicator long-term. virtually and here see again remain being there normalized disrupted golf of operations. staying one will course for April, you over things at forces gradually April, all course high pretty had you closed, shops obviously another the level a interest certainly that which those golf in to on the described is off that's think factors you resuming shut period course, was down. closer is time a shutdown. shops of - in We retail

we you lines As at of on at balls their - the of our you tethered different certainly own look all paces. segment, business by see most closely suit probably recovery, front rounds categories play see following and to other participation different, and

seeing again forces, golf interest But are first long-term very commerce playing that's but we the So, being different and two right a golf up positive. shops golf nothing catch now. now are force right in and high

Kimberly Greenberger

much. so you Thank

Sondra Lennon

Thank you, Kimberly.

please. question, Next

Operator

with Stephens. Imbro Daniel

open. is line Your

Unidentified Analyst

are of Andrew Daniel. thinking for Hey, remaining this your Thanks. environment the your is rational position price was going for wondering how and inventory forward. about thoughts the on price kind the [ph] I environment what year you're for and

Tom Pacheco

our internally inventory Sure, of with can Andrew. field environment. start I'll with David sort inventory and the pricing and position - about talk perhaps

We expected. left year - the this inventories normally and end drop-off for from was from QX which compares that of So, at the $XXX the year $XXX perhaps about XXXX, of in the at a the of little million at but us, quarter, XXX QX, decrease have the end in of the we attribute normal decrease end million, to the previous the at of sheet than this the seasonally occurred would expected. end end - more less we than balance a which to sales on down inventory from were a the is was million QX little our at is

supply doing our overall is we're a amount Our forward this comfortable ensure managing really point schedules looking at our appropriate chain sort that and of to are production and And with of inventory. composition the internally. levels our team job good inventory

David Maher

both its on maybe Andrew, segment - the seeing just going on high mid-March, prepare but and world, retail cases by be all marketplace. little be April as they're are call to August golf at vary channel, a the course, for where what seasonally the going of Yes, to course through in Certainly, inventories to channels period we're in it color tends in around peak.

Looking then - seasonally at inventories six confronted And four high closures they to be mid-March. would the and last in for course off then store weeks.

like and of or you many sense in belt around for on snow mid course X, gives and we what for look cancel belt that defer give orders or would regions opening April channel shops couple that typically a weather. their might saw weeks So ship it take which

down ball a available result versus Golf off-course consumable lighter and play best is our course shape, leaner ago. And moment from to golf inventory a going channel be the typically increased as the rounds the our So, on channel. sense year their than of Titleist be information ball at balls is are given would nature. in the that and golf inventory -

had so full. pipeline is putters, we wedges - launched we clubs, To recently and the had

likely this far in business a and to don't Our get in Iron is channels position. tends dependent fitting thus out inventory of inventory a all amount generally of bit time driver that too fortunate year final year. little it good driver be for life be primarily TS There a of the ought two-year our a We're cycle. is again market, seasonally the to as in

our So year to relatively low inventories two. in be tend would

FootJoy it - is this first final FootJoy year we which running we saw piece see that, is become promotional. categories the - time is pretty be of in To the shape. this was heavy add normal to and And one for good to which footwear I'd of is

pushed to ago, In that inventory, look the X course or on fact, a they we year. idea orders were many deferred the again - at are later year in many back down versus XX% April out

Unidentified Analyst

how going Thanks. get you're the forward, expecting to price And promotional here? expecting from on Thanks. are environment you could anyone to you touch change

David Maher

they have to we a golf year. are at promotions and activity for extend we soon - spring traffic those say month throughout in to those soon was and coming online this promotions, ball running, seen manufacturers, too note throughout because ourselves we've point, and too said of the with so extended. expect and I it. seen included, stage retail earlier, a preparing golf say, know, You back that function it's showcase their as just do missed activity did some I At - - promote promote we - been largely We've It's really this of missed ball some to to we - retail see do promotional we up but footwear.

Unidentified Analyst

really helpful. Thanks That's right. guys. All

Sondra Lennon

Andrew. Thank you,

Next question, please.

Operator

Tim Conder Fargo Securities. with Wells

open. is line Your

Joe Lackey

Tim. actually Hope Joe for everyone safe it's in Lackey Hi, dialing all. is of first

on build first on I - question. the to So wanted

talking like about declines you you're seeing cadence is were as maybe March? there Can the - mid-March what the is the right, easing in what a as move weeks So are declines the talk from seeing far late less right pace as you than is April. retail you of - about cadence, of through

could closed were now? And then, comment what mid-March and of of similarly, as you outlets maybe if retail open as what of are percentage currently your

David Maher

to closures a we retail golf open of two, cadence, three different challenging weeks, over that the seen fair certainly week-by-week as closed in vast seeing correlate we're golf open. more retailers golf fair seen the the with outlets period course to over fact lot loosen open, we we've last March being more that courses the earlier, I'll April that the period of - the And seeing golf shops US, said were so more up, we've majority shops seen Yes, we're most said and in we've Korea, different weeks, a course as couple last seeing of - on at - we're Japan both so golf as and Europe. on Again but mid-March of that look to and to certainly retailers.

we've as said, - The day. ago. thought courses, stands have that was states literally at of changes by - to number in golf recovery So weeks number process, have it beginning allowed it it we're ago the changes a for now of days even of XX, smaller reopen far number the the that

And commerce, are again But golf see as golf a shops regions of and we whole just following terms about are more lot their it courses reactivate regulations. golf more more - of safely seeing So we're more and and more operational states economies. state in in retail as lagging. thinking they're ways XX% to roughly ramp-up change

So in and open not are have shops, they opened. in all states retail some yet all golf states, golf many outlets

couple real most again I out really golf shops a the that that next gradual couple - running. over So see of it's the over by weeks of the and up weeks. And is of playing development last and we time process expect should back May, end

Joe Lackey

got try and obviously then the got that's balls disruption, moving of kind decline you've So comparison, into demand just right? the then on lot a manufacturing out there, And rounds played in it and got and XX% different buckets, a hoping business you've right? parts you one the difficult consumer maybe because and Okay, quantify the was I helpful. could there's you've of parse Obviously, right, decline right? follow-up

would maybe helpful. be those divide and it what if you So, each of kind parse that of of of that kind Thanks. fall buckets could up part decline QX would in

David Maher

non-Pro trail a balls, a golf for a odd year even Pro VX bit, prior an in VX QX to here tends year launch. so launch year Yes,

as impact expectations. the said The the far that's of biggest end X our weeks was the ahead one. months, couple the the the of Tom impact of that's running - Tour first our in Velocity and an at of of Step AVX launches or drop-off and at supply chain. we're So Soft - XX step the end is first quarter, at of of - less

no So, impact from the in supply fact chain. virtually

end out couldn't at exception custom the what the shipments primary we the the in end the the balls was at get of golf of slowdown saw month. quarter. impact ball the of on some you With that But

some their saw either of And a take in channel lot would who comments, it. April golf again, inventory XX the cancel mentioned typically we push back that, of as call shops in spring or March earlier us of lot and on I that on order X,

Joe Lackey

thanks. Okay,

Sondra Lennon

Thank you, Joe.

question, Next please.

Operator

Zaccone Certainly. Morgan. with [Operator Instructions] JP Steven

Your line open. is

Steven Zaccone

with how follow-up get retail off third about [Technical partners, position, cleaner long the quarter? do could Difficulty] start channel the course you clean for question. it by your To would prior positioning, the channel, on of channel question conversations inventory the take in based to be off course in the the specifically the relatively on think

David Maher

job purchases. their say, as with with at scaled and they I a good think we job we to a They they good e-Commerce fair as inventories, did back - pickup. did Yes, curbside businesses look so obviously

they be where again I it X weeks were in - than X mid-March, is were would say now to ago. to where slightly So they likely better was

in others going at inventory at other - looking three happen they're that the that consumables we are follow pace what segments my and probably - to months. So and ago back in to Again, positions to begs I question the next fair do earlier today a say and back down versus really think in the next year think flat first and to then determined. is slightly come fastest - be to the categories framing, next which the

are should us that one participation should game high again, few And are time to what to going clarity at to game, you'd know months, pace love think hear but what robust online. - which the to in this in the getting the indicator a we and which will one, we is this one leads the the - happen to and - the interest to and Star or North is two we to living believe terms be I the on But weeks is next some in seen and going is at the robust, just one where all a hopeful more and the week better understand. in we've terms in do this have we of have others time back consumables of - some making follow the we're are buy be retail

Steven Zaccone

Thanks, David.

follow-up that. a on Just

impacting your for commentary pandemic out to about like maybe COVID-XX of new consider your causing schedule about delaying launch you launch how business, fall your of you the the just the So if driver some balance to having is is category would the the rethink there? year product the excess year, think you next it driver given

David Maher

question. fair Yes,

you'd virtually all we launches categories. planned As fall expect, in have

to plays et be is cetera, differ or validation et health, to spending, the Our role in at cetera, go inventories, moment as ready fitting that overall ready a tour to consumer calculus goal depending well. readiness dynamics, on market

the by to decisions six readiness weeks next product read the thus intentions are the four get market of and circumstances so over and good the on consumer will Our actions. category and our then make a to will vary our certainly and course

say into - window planned, half. the the a a off some later pushed At later fair our pushed moment, in of year plan to launches as next may second into will and others be - some - into some go might of our be

Steven Zaccone

in Great. quarter. the second luck of Best

David Maher

you. Thank

Tom Pacheco

Thank you.

Operator

There time. now further at presenters. to are call like back questions this no the the turn I would to over

David Maher

own challenges and Jack, and game we thank believe everybody the while all thanks we until and wish well the long-term, We you for you of near-term we I for safety time and are confronting. positioned Acushnet do golf are good today. again. the your speak that health face

Operator

you This concludes We for today's call. conference your thank participation.

now may disconnect. You

Acushnet (GOLF) 10 May 202020 Q1 Earnings call transcript