GOLF - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and welcome to the Acushnet Holdings Corporation Fourth Quarter 2021 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Ms.

Sondra Lennon, Vice President of Planning and Analysis and Investor Relations. ma'am. ahead, go Please

Sondra Lennon

Thank quarter joining earnings and everyone. Acushnet conference today Holdings fourth full you morning, us for for call. Good year XXXX

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

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

results GAAP or to note David. the a referring Securities press in this the cause accompany reference to that year-to-date For XXXX, our be press basis Please results turn a list accompany filings of factors including and call and slides how of found and today's over we in XX-month I'll the and the be financial U.S. constant those non-GAAP differ, or full at that our period today's period. slides the will revenues items will refer metrics comparable items when this as we could Exchange Commission. see the to ended the comparisons, and we and also Throughout Exchange adjusted Explanations our with actual with presentation please that metrics, currency reconciliations year presentation the use XX-month these release, and filings discussion, schedules and making XX, EBITDA. such to U.S. release, that Securities why Commission. of in can December With that, to to

David Maher

for everyone, call morning, the good and today. joining Sondra, thank and you Thanks,

a leverage advantages up year, address outlook with outline demand supply-side responding XXXX expectations to morning, chain challenging Company our also how Acushnet fourth to a in confronting initial environment. competitive once team we will strong quarter you again and Tom while the will supply this delivered is As I terrific share as our for exceeding meet wrapped and complexities.

the from segments and by reported new million momentum up up with by versus XX% juniors in aided the First as are years golfers X% and almost past by we XX XXXX. XXXX This outside Foundation. U.S. States the rounds game's fastest-growing with story rounds was encouraged we Golf's foremost, and increase and over two are the National women XXX,XXX some Golf similar, play the United and trajectory participation or commitment organization-wide the sustaining of well. business continues to products up which, quality, to over in on Company's game's growth. This serve and dedicated an deliver built -- the the focus the XX% our target Acushnet's our innovation in product services markets. and This drives around of turn, Company fuels shareholders ex-U.S. were project and player. connection people needs rounds is year consumer, in the preferences for the and highest

investments throughout across strategic Company's resilience are team's organization highs. few their Acushnet appreciative all-time for and evident Investments powered of at market the and positions development financial my for creative spirit years. FootJoy the product leadership fueling connection was during XXXX, As dedication especially am many has successes, of associates and past I the fellow innovation the The future. golfer fortify and performance in Company's and to are growth Titleist the

$X.XX is momentum, Building to to capital returned to positively a which Company am behind to strengthening spending the approved strong has quarterly operations look XXXX. our our to interact $XXX affirming our XXXX we leverages each along dividend our Company largest of major has I we share. targeted our and are capabilities, year and as share In per the trade Company's capital confident to-date. upon brands. annual since allocation, future, Company's dividend and million Directors golfers dividend of in Board in through this will the representing our in pleased repurchase its Acushnet's BXB approach share And and repurchase shareholders initiating increase ball organic the announce Our in will our program and The that dividend disciplined this increased programs, return our raised X% that growth BXC investment with with balance underway that well impact and and expertise, M&A reach. is sheet golf partners our fund programs investment infrastructure global continued support platforms ongoing digital to

our to moving results. Now

X, Here sales year and on earnings. fourth full we and Slide quarter outlined

our which $X and For comped inventory the as QX prioritize and production TSi strong sales, as against in launch. negative planned million club capacity sales quarter, EBITDA demand of towards the year's adjusted last well of to reflects driver and building XXXX decisions $XXX million decline for

balls, margins higher TSi And For throughout growth successful and XX% and this cash were flow. up reduced core increased golf EBITDA by as drivers, the held products. momentum many shoes other and well were more the ASPs generated gains golf than Tom up offset XX% operating year At favorable as $X.XX chain-related sales million new the Premiere double-digit promotional increases of Titleist tangible and VX irons, will by HyperFlex with and $XXX impacts full of cost to to the every Acushnet is billion, revenues segment activity. new FJ mixes, $XXX every supply address gross the Pro Company in generated in region. Adjusted the year, million,

Now have golf one one flowing pleased been gain an begin driver looking every peak XXXX product response decline. see capacity fitting club did Tour year. with as their maintain PGA notable on new strive And T-Series which led In chase on on FJ up year Korea. the are spring SL, we two-year posted especially is the product demand team The and the and following and were the our footwear markets, the TSi the athletic of year with recover pace classic by EMEA accelerated sales product a own In with XXXX. this we apparel, in number growth has increased to field the outerwear Titleist corporate inspired and team we our is particularly keep which by all record U.S., our to to balls metals Titleist was is ball strong the inventories cycles. early Pro the category, Titleist apparel as spikeless finished categories led and our clubs as gear and rates. by the our innovative also by with enter XX% ranging and XX%, the golf. footwear in work by throughout very growth U.S. grew which brisk by custom in Flex at year gains Japan especially new and production demand. the to VXx great product growth, business $XXX to we're new had led demand up Pro the in And given for The shoe sales premiere, XX%, irons FootJoy's we and at keep business brand life healthy pushed inspired strong momentum, our near pleased Pro limits by achieving number as of from season. vibrant, TSi XX% supplier of EMEA, and drivers VX models. component the we steady golf and availability Titleist million and led year, segment. in

in for robust apparel year. While especially and market, segments, posted U.S. Shoes the Asia the up strong reportable Titleist Shoes growth which over not also was was XX%. in

X Slide look to by Next region. and a our at business quick

who another, was the products as across is consistent testament XXXX the Here, our markets XX% we over demand and this global teams but to Typically, the the for you as to Korea. Acushnet best markets reason for story meet not in see played products EMEA, coordinated or all effectively availability case global and tight year Acushnet and markets see and This success our similarly positioning was our outlier sales a of were out good U.S., one across chain up regions. demand. largest in for supply our marketing Japan the work leaders

that the and inventories in looking are Market a encouraged partners and offer grew Now we XXXX for both generally strong are strong, enthusiasm including channel XXXX. and healthy forward, golfer lean. by game, are base are participation trade fundamentals

golf XX strong our XX% talented of a of expect business will supply worldwide The with LPGA Tours. the models for is and launched events in QX. season in motivated And catalyst Titleist in and Speed professional Tour off and World impact as spite growth to to new tours, upon golf in the balls we on last with which balls and the Titleist Acushnet's golf game start This business our every winning a we energy We limitations, inward, in is and in as opening Titleist PGA chain up tournament structure team DP tours important great XX continued balls Tour poised momentum at winning XXXX. first AVX QX. usage TruFeel especially is our the golf recently starts Looking also to the year. Tour ball ramps on new to build is launch the the full quarter, exciting momentum Soft played an throughout LPGA and XXXX the also Tour across are especially around Velocity PGA, golf

we the availability expect strive a half raw years the through year. is of for be You year. materials the we make on will prior note split Titleist that similar first most golf to to will trade the from In of as much timing of XXXX, allocations launch change tight balls the

and are April. Titleist new in Vokey March in on half, Phantom schedule new launches SMX the Golf by wedges Cameron Scotty Club of putters First introductions led

PGA first and year. played half event debut year, World Cameron have and champions months of have number tournament Scotty New and one the January events tours. In the Tour Vokey this their wins at every as DP most Tour of putters won PGA at the wedges LPGA in Tour the PGA added the made the been two on on the wedge

footwear apparel and been collections and also is might in about led both response fuel FootJoy trade expect, of a new carried we'll introduce soon and by footwear the product the an year start, and expanded range you energy we're QX. our lines. great And their Tour new off excited series have new spring As women's FJ bookings outerwear to Alpha into to launch, great and terrific.

begin following the game of momentum as in golf ski In be to disruption. we closing, to will Lastly, the look high are walk and see of structural range to try expect play them will build golf. in in golfers years new designed wide exciting and health industry Acushnet recover golf products about shops best this for the coming months, help a category retail later two optimistic of they expectations upon their golf we to year the enthused have and our Shoes

I now and attention uncertainties control, has good continue morning. are confident months. Thanks a adapting am circumstances that the team are their sure to Our we on navigate pass this that at I as your confront will for the excel call they handle to the over Tom. we will within coming to to

Tom Pacheco

drivers on profit QX down QX higher volumes on million XX. XX.X%, of were this million. of were FX. higher higher lower Slide associates everyone. comp in by $X XXXX. inbound $XXX a forth put quarter David, they fourth especially essentially efforts in continued, to a Thanks, with balls. to clubs level and and quarter Starting costs up demand million, average and golf morning, against truly freight production like our and for good reported X% here results pandemic to manage Consolidated of the in XXX supply and R&D which flat year, basis versus $XXX down million, up million, the continued all expense launch selling and solid $XX was result, sales QX I basis chain deliver supply net for to disruptions Overall, offset XXXX were exceptional million, prices gross for impact and results $XX and chain strong compared XXXX. the the sales continue in amazing points. and is golf metals to given partially was Gross sales recognize our up SG&A unprecedented last resulting FootJoy key to from the challenges was The expense higher margins escalate, Acushnet of would materials our volumes in the through costs, for XXXX X% $XXX

indemnification selling and demand Continued SG&A investment of segments settlement from in which across prior And QX from year, of expense XXX,XXX, audit EBITDA was was recorded operations absence X X was all increased was led a associated from loss of $XX million levels take on absence to the primarily an receivable the mainly down result from million a from XXXX. to million. promotion, income Income of to the Acushnet quarter that million, almost tax Other QX of primarily was year, up reportable Net down higher $X advertising, advantage Holdings of $XX attributable tax the XXXX. income as prior $X reversal expense distribution. XX an in of benefits the the other million for a was and of expense the adjusted to was in loss expense related item, a the the recorded million of loss million, XXXX.

the in XXXX. by higher net to freight for Moving all XXXX QX were all higher up on million, Much to materials was X XX comes were compared across X.XX was higher volumes I of reported basis, advertising prices the XXX demand, R&D profit was sales during from results, million, our XX%, prior up increased compared and mentioned up and information distribution of the partially XX.X%, segments, a as level inbound and year basis sales million. like higher offset for million to XXXX higher and expense manufacturing profits promotions, from year costs advantage entitled Gross primarily Gross billion, consolidated the but reportable throughout reportable or technology. but year. we billion, the and points full and investments primarily year X.XX XX mainly levels gross average which selling year, effects XXX all XX% to up margins segments, XX% and across XX% golf expense selling SG&A made take segments the higher for SG&A up balls. across up raw were

absence reconciliation income was adjusted And X and to XXXX. up to financial Net costs EBITDA strong million, XXX the led employee expense was for from in our higher up X a was million, which Interest XXX Income related million full million, million up was expense to charges. of addition, was was In which from XXXX. XXXX results operations average receivable primarily due in indemnification million, XXXX million borrowings, reversal decrease recorded rates. tax to and income of million, lower XXX million, on Acushnet lower Other in expense lower the XX than XX%. presentation. XX down interest the earnings was because settlement income XXX primarily a and taxes. EBITDA well as in the income net year appendix higher pension million, attributable as was up XX of before There in QX was our of XX Holdings slide for adjusted the release,

Moving XXX of Total XXX to XX, from had benefit end of million, And revolving our end XXXX, we of approximately the Slide of XXX balance from decrease outstanding unrestricted to under on borrowings of debt million of million strength our available credit the we was the At cash hand. XX last about year. continue had a facility. we sheet. million

at XXXX times on the down down Our million, sales cash the during receivable to X.X end the down from Consolidated days were of days, at end X.X was end compared were times quarter from XX% was XXX Our the XXXX at leverage the end outstanding seven strong XXXX. of XX XXXX, accounts which of collections ratio very day fourth XXXX. of

footwear, million. consolidated position better XX% strong gloves, QX million and build were demand was continued apparel XXXX, compared golf was operations impacted XXXX. year-over-year throughout year selectively for up for full was of to up inventories clubs, up year, Cash the XXXX. we of million the continue which which and million from compares capital up end $XXX $XX the full business which $XXX upcoming million $XX to spent inventory was by year, $XXX And driven during expenditures. FootJoy our the inventory the and the for in last was $XXX and to were QX The increase in investments million our $XX across $XX on to of supply challenges from during million and we the At While periods XXXX. able season. $XX comparable $XX chain year, levels million This and to million in for form We XX%. million the flow for CapEx business make QX

expect XXXX. as we some supply million, XXXX about challenges to our $XX our chain equipment XXXX, delays For CapEx increase caused in to by shifted capital of receiving expenditures into

Turning XX. to Slide

supported continued results strategy. financial strong Our have the capital of execution allocation our

Our highest with at on align pursue return. acquisitions priority with remains and investments strategy innovation, focus and continue growth products a that we focus operational our golfer will and believe performance premium investing a golfers. in the advance excellence, drive to on business We to these product our dedicated that favorable long-term appeal connection

focus of Our of the QX X% record paid our as priority. our Board which announced to to capital our represents for strong In of million, a shareholders dividends QX XXXX. our free December, in This total cash $XX outflow flow mentioned, million. March and paid of a on returning also up a approximately David to XX, shareholders $XX XXXX. on remains dividend $X.XX year cash payable generating X% share expected March increased previously we to dividend, today compared on XX per Directors an dividend declared cash and increase And

we repurchased the about million. During approximately quarter, of $XX shares a total XXX,XXX for fourth

including we Fila total X share about November. in had a end purchased repurchase authorization X.X about For total shares almost we $XX a more agreement million of $XX the for left the $XX February XX, XXXX year, current on shares of repurchase we than million in at our from approximately $XX.X Through million million announced the year. completing million, full repurchased remaining a of for which little the million share

current between repurchase and expect now XXXX. to repurchase end the of under authorization the million We remaining our share XX

we strategy proposition, believe element for to total long-term creates Our return our a shareholders. Acushnet's a of which is foundational compelling allocation value continue capital

Moving XX. to Slide

Our lean the XXXX and healthy of inventories. continued outlook a of golf and pipeline strong field reflects new demand introductions products, for for our replenishment product

range billion. continues to of driving And we this, XXX by the up Our our net consideration, up to are continue throughout to range consolidated of be overall causing raw expect be gross into costs of and material be we elevated than year component we are sales to the and production margins XX governed limitations, XXXX and which in expect X.XXX EBITDA basis, X.XXX expect down billion our net higher expect to year. across about to all to are higher to outlook which which million X.X to face year Taking year material shortages we to costs. expect factors Within costs, we in these X.X%, And inbound full between a million. the also basis we consolidated and supply expected XXX XX freight chain businesses, be currency points. OpEx to sales On constant full full year full XXXX. be be adjusted continue

OpEx than pandemic, of closures impact will at of grow the incremental significant These However, markets. expectations the supply a of including global worsening assume and disruptions chain sales. rate additional slower no

timing of a past business during our two normal the the in disrupted having expect We cadence XXXX been after to have more years.

increased chain the is are costs to than from continue in first The from of be freight supply year EBITDA make down level XXXX, our brands. XX% higher sales, about in be net XXXX. adjusted consolidated maintain half as resulting the first investments full the of margins full XX% our adjusted leadership and year half we support half little we to EBITDA higher about XXXX a due expected to and and position OpEx, gross mainly expect For of from XX% and to sales of more decrease to first to lower sales

trade compared and EBITDA tremendous XXXX adjusted through anticipate The to improvement chain manage XXXX. pandemic-related from gross challenges margins us half we supply relative results as in to XXXX. unprecedented from increase comes helped and deliver In Acushnet challenges to decreases associates supply in ease conclusion, chain and begin second to for OpEx our partners

long-term financial we over expect chain will we With that, continue year, now XXXX while return forward for confident Looking the throughout Sondra meet shareholders. and total to our deliver will Q&A. goals our supply I are a for turn for solid challenges call the we to

Sondra Lennon

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

Operator

Andress first comes line Instructions] Capital from [Operator question Your of KeyBanc the Markets. with Brett

Brett Andress

on commentary, but the guys. morning, David, generally And could maybe on Hey, the are more weeks multipart we part. of inventories product this a here. part That's channel by hand into year? is, you first or this And into this then I point Do good you mentioned evolved question, guess really is I or we category? seeing month go think a any hand little levels at are geographically some channel back balls you you I how inventory to XXXX? dig allocation the in differences a do lean staying throughout kind last on then, Or what either do from think there guess, inventory 'XX? your normal year perspective? get

David Maher

Yes.

Okay. Brett. Good morning,

in XX% across they're for right? clubs. globe. our all was our gear footwear XXXX. most clubs to as to that say, XX% consistent are So ground with So, levels characterize Fair building and with better and incremental the down There any inventory in lean quarter the no regions little production fourth we're in and than impacted, off a And we little balls a segments, we really story with right? It's directed discrepancies most I'd capacity the are around in probably held towards balls that we to regionally, said.

open in picture. really the -- should April. up call macro, right, Again, our down seasonally it as be so and from to they framing March And they're that's products remind golf inventory much you, right XX% the with I'll of down now, some market about product of low XX%. the to So Acushnet

but for the assemblance comment good be begin to think half first products until of market. do into the I realistically in new But the most of throughout some normality going April I throughout the made expect an of the regions others example, we're at will inventory, that come least with all as we it in be year. March, quarter marketplace the on all allocated of to strained see earlier and do as we balls, be to and will the six get I think tight the us 'XX, months shape be first golf as year. you'll to that it models third pipeline relates

Brett Andress

just in 'XX and this And exposure EMEA Eastern point? thinking there there. between have about factored there. maybe sense in guide into or And can your way of exposure demand then supply get out the at you a broader Is Western Europe? Europe disruptions any you breakout Just trying to the

David Maher

Yes. still, to happening impact time business. point there. minimal. golf determined. The be is our just EMEA right, supply to which is thing of to spreads is what's From of the course, would Obviously, throughout affect cost only so much oil, this chain the standpoint, to if real we the business business over a of limited, immediate How not our

the certainly the be is So oil. -- be of to beyond, and variable but disruptions chain happens but would any to supply expect beyond that here that, above biggest I price going what don't

Operator

next question Imbro Daniel Your Inc. of line comes Stephens, with from the

Daniel Imbro

equipment dedicated I I you're David, [Audio the core and to you're equipment, you're continuation noted year, are and those like apparel overall beginning year, mentioned, what what strong, of drives of we trends are your seeing, golf then And But if to at given seemed one as comfort the Gap] as year, guess sales? which get this that golfer looking that at businesses. of data you played in cohort you on obviously, most just thinking we the ask about trends. we growth it starting this this down rounds are obviously see do on want you on points the call that seeing of seeing one

David Maher

Yes, Daniel.

seeing at look strong more. this dedicated and business, golfers. greater also. the comes we and And they're And our become, you and to We know playing from know expect levels more experiencing core demand. that to golfers we tend of when they our back say, of the most apparel. that we're would course, adding So they're this more We purchasing that, know we we're equipment dedicated, of play, know

which in your I are the growth your think performance say decisions. total their players this purchase base. this fair to is the I to prioritizes proportional is has the the of, And sort think golfer to fundamentally group group, often these question to grown most And

So that's how sort the about of we on think market broad commentary today.

as hey, I and game, As with kind a ask I a golfer minute we think and more be of to don't looking given just grow But that's fundamentals function place the in what towards surprise how a the in and ebbs of and we enough new we normal marketplace we should work again, at getting be digits out inventories look record the premise to bit or at down we nobody again, a stick. of think there see. of left going in of were game think because year responds the do is decline of with of up, we're That trends like to three chains think society, the hybrid and when hey, you're 'XX. and flows that a left good going to get demand, I base to with know rounds a good it I golfers at tend We level, going be tall the as still maybe current and the supply wrap think it said as you're in agree be are XX that, it's game in But forward can But should a your Broadly I that XX% -- business. it folks to ago, of I in lean. to really year. of would pretty our But the that, established equipment, habits a and some that and I we up, we a new some we're into be evolution out demand, a work. We to head transition there pandemic. it inventories society XXXX. are you the round should from of add agree remote end play all, up double versus like XXXX, just

Daniel Imbro

And right apparel Any Got look think like strength for maybe the it. half, of on side. side regions and certain now And groups side, right grass in at seeing on in think are the that back is now. I helpful. season on you outside indication any pre-books the looking I different any the spring apparel then green a customers That's are preorders, the on selling Shoes as strong or in apparel of for mentioned you lot book. half pre-selling of going back kind maybe resorts FootJoy pre-order you early

Tom Pacheco

Yes. our our of Bookings would amount to marketplace. what of for put the year. business a first strong are Again, believe tend to grass proper business, And We're embroidered right. also the we green is They apparel. half you're strong. most in the balancing be of lot are the

expected you've and sell-through. demand got You've in turn got

So couldn't a you had space, overall, strong spring season. the if in because I and the back that apparel reality was starting your think that probably of a up function lost began recovery recover the really it was catch question at and of apparel the in and in just 'XX, supply 'XX gets chains which half to was a equipment 'XX 'XX,

even So and wait strong in bookings we Daniel, a the half. are to about Shoes there's what apparel think relates of half as primary And and optimistic second do second the certainly markets. half to see a Titleist then that apparel But initially, Asian is as in FootJoy, as I here, it really going are to out plays first the be lead well. the our bit story. But

Daniel Imbro

a Great. Super clarifier on quick helpful. just model. the then And

fourth guide of in Is year? CapEx quarter CapEx like looks we In stepped meaningfully or back quarter pretty going be by quarter? How think the about more the cadence for here. your to of the it more up half should by terms weighted regular seasonality maybe

David Maher

lot really nature and Yes, will to chain, now The delays XXXX the back be going orders Daniel, there was in come out of by that more more it I function quarter. year. a are think we throughout evenly a regular the supply in of in half have

Operator

Swartz the from Mike Your with line Securities. of next question Truist comes

Mike Swartz

-- first you're of for But headwinds, terms magnitude that through guidance back the maybe year? just give how supply your year. that's on still of guidance half what maybe a question us quick the chain much particularly But a in and seeing ask to challenges wanted means? sense the some holding Just inflationary of

David Maher

Michael, good morning. Yes,

called vary preventing story and we limited you So, it ball plants some of I'll operating out, and it's as that's at With talked golf second category the of break do capacity, largely in of our grip different availability down a the in half us material is which the may a half availability, from a year. category, full maybe in at really by balls, eases first shortage. that by function they'll headwinds, to raw give least we steel year, more story of you about the clubs, recall, component Last year, We color. think shafts. and

Not spring, models port shape as a product around in like. moving which to network. Now and we're continue to the and to example, exists the footwear, of our footwear two just bottleneck is port-related, through do similar the where that's on weeks fast from acute different is as in we've in delayed in been issue a as for on times, launch about got constraints add some of distribution U.S. And although it's the network And related has steel of of continues making globe. capacity improving, then more in by products this not an And which a less congestion because standpoint, we has shafts. are apparel I'd of an issues the clubs And impact much footwear production about golf the U.S. And the the in footwear really complexity and things lead expect especially we've And about as gear, our apparel. well. got decent U.S. couple JV production the us are we some outside that custom it at challenge a time. case most to on us an U.S. for quite distribution We've and of It's would time. in -- as the partnership. get producing story serve anybody It very

we for the think a chain framing at percent, headwinds. how some So should by job although a are sense does around we supply will XX-some-odd coming of think virtue were pretty year it us say, that those environment, about limitations. general and in up are sales supply supply minimum I of where see off we chain of that managing growth, the chain did imply headwinds. planning a imply those we and And challenges improvement good still

Mike Swartz

incremental half? we're last know about of Is through just a laid year? the that what half of Or is the the you've of the second of talking made 'XX. you few referenced, I it And then this a those in product investments back in just continuation out capacity you But beginning and some that investments came in Okay. that of seeing some investment? maybe

Tom Pacheco

Yes, BXB we continue business level. in to it's of grown to make to has our continue -- and levels. a And we've business at say, XXXX had the DXC a this technology investments our optimize We've to from, and the number support platform. make continuation. invest will And there's substantially infrastructure to

So, the We continue. at new a is sort think OpEx level. to our of going investments are

it XXXX, relative you sales. However, percentage a some has to of declined would, if as

but levels. seeing to continue So, are we leverage, at these to invest going are we

Operator

line the Altobello question next Your James. of from Joe Raymond with comes

Joe Altobello

of price respectively How that assuming constant currency, wanted the go replenishment? underlying on in is inventory sales coming from increases? to the you're Just from how more much to much 'XX of about like X%. of coming that And is is How guidance increase looks that X.X% back it that much guidance demand? an

Tom Pacheco

think of X-year cadence. level, our that's to you especially out life product when at cycle Yes, pretty that parse difficult

think year. launch, got in and example, a model VX you last price an you've it's VX no as Pro the increase. year XXXX, a about launch And Pro second As

down, So we're but expect volumes benefit to you be would increase. still the price to from going

the So puts as takes, difficult it portfolio, buckets. parse that and it those you gets out whole with think to about into across

Joe Altobello

over fair. Okay. of And That's capital shifting All allocation. to I guess kind right.

that balance that's but your how couple think different way curious looks capital lot of allocation priorities nicely sheet impacted out your a laid ago. You the today about a going And than you I'm forward? years did it

Tom Pacheco

it point, much. very impacted I say hasn't this At it would

our priorities remain same. Our the strategy and

cycle, coming still this still of a pandemic out and are there's out lot of of coming We uncertainty. hopefully

buy expecting expect $XX operate, of million will be to the which we're share in at we would worth dividend $XXX So say, would current and dividends a put repurchases. would continue larger, did share million our close I'd year, we about that last little pay cautiously. repurchase authorization, our of to shares $XX we But to did complete us XXXX we million, and and

expect and I in So we million was his of record, remarks, million $XXX mentioned would in capital shareholders think David in which closer that a XXXX. returned to be we to to $XXX XXXX,

and to similar to past. So, have of we're the for the to return had capital haven't allocation wise. point, capital our opportunities I sheet, would But what to significant to this balance changes say, continue in look M&A strength shareholders, continue going going at we strategy, despite we we're our to to any

Operator

Trading. Compass Next from comes question & the with Research Alexander Casey Point of line

Casey Alexander

had relation answered, growth but have you I U.S. of my question SUS, been Most or strong to one said really North which in America questions in have do

into opportunity the shoes accelerate that is penetration to grass green growth? green introduce strong channel an your channel, to there the grass into continue and Given

David Maher

Casey. Yes,

So is green really, the of bulk and grass. business Shoes' the majority

U.S. did XX%. make I it green your the up comment, that when -- but don't question, we grass look That's if story. I that's So answers a know business, primarily at Shoes' was

Casey Alexander

Thank my Okay, answered. other only question. great. That's you. were My questions

David Maher

Thanks Casey.

Operator

the comes Jefferies. of last Glaessgen line from Anna with Your question

Anna Glaessgen

for inventory the for by the for segment. or in on build the between provide year and launches preparing existing the color quarter? some you also Could Thanks color build on products

David Maher

Yes.

So with I'll start Anna. that one,

track. half on the schedule launch Our really is for first

ball and a approach from adjustments timing to would little noted, to our granular I As we typically in years on even-numbered what have that. get a launch be more our of couple

New Tour models together, capacity. January, approach this Soft we May. materials have manage all to normal but launch new as launched was in a golf late felt our ball AVX availability TruFeel production and tight in make expect Tour And right in and we raw most of we and the launched we the would year, to Velocity, those Speed again, try

in couple a to the launch April, about Scotty changed. and first year-end up year-end we're but in track moved in as with launches weeks it's really April. ideally, week, We're new increase, it even than FootJoy, very Cameron putters this pleased obviously of over were about on in footwear Vokey of in excited And the versus FootJoy up those shape million our of last happening wedges quarter couple up -- mentioned good and we shape. golf a in we'll early be that's level, So at a U.S. Tom particularly what's I hand and 'XX. the to in next Both noted, better launch have are is XX%, $XX really, this out most We're balls, year, higher higher 'XX but inventory with mouth. where would year into

Anna Glaessgen

prior then the And promotionality margin? from to product expecting you make as are reapproach replenished, levels aspect in that year, and baked is gross the the channel capacity Great. you or in for what's being

David Maher

the meaningful promotional a been to degree, been there's get know the I going see no don't least Yes. of has XX such that In half to marketplace point sooner we're seeing the unlikely in promotional going last certainly time, The so that year. at year. the later the that's to supply-demand little months to it for least relationship going we first at it to or be you're resume first in think activity, half see but to the and of some in of to activity. not

Anna Glaessgen

Great, thanks

David Maher

everybody. And thanks, you. Thank

a look spring interest first As time back Acushnet Thanks we your have up Company. and the after appreciate always, catching quarter. you the and I hope in forward great to your we again. all

Operator

today's This conference. concludes

may disconnect. now You

Acushnet (GOLF) 1 Mar 222021 Q4 Earnings call transcript