Earnings call transcript Q3 2022

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Sondra Lennon

Good morning everyone. Thank you for joining us today for Acushnet Holdings Corp.

Third Quarter 2022 Earnings Conference Call.

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

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

to Exchange our presentation of cause our filings press For that U.S. and the differ, Securities the results and release, accompany list today's please that a slides with see Commission. factors actual could

use those the and metrics, items Commission. these and as revenues Exchange such presentation, Throughout we make the release, will items of how reconciliations this and of that reference a constant metrics found to with GAAP basis and this including schedules the adjusted currency be can accompany discussion, why and Explanations in filings Securities we to press in non-GAAP our in today's financial EBITDA. U.S. slides at

this measurement business. that or otherwise as basis the And provides currency period presentation XX, year-on-year note to a are this sales of unless comparable to XXXX, decreases the also references and we nine-month feel ended refer increases best on comparisons, year-to-date we nine-month September to and the performance Please to referring constant context when will period. and trends stated, as our throughout results

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

David Maher

everyone. morning, good and Sondra, Thanks,

and I markets. Acushnet's continued As terms capabilities note, the of good of the we quarter Acushnet's major resilience a dedication in brands, and results And and of talented must in also participation this momentum company's of purchasing products to chain work and these all performance the associates. point the golfers both great third will share morning reflects our and of strength ongoing supply expansion

with and sales across results consistent over to increased record slide XX% have businesses, health on each X, the sales $X.XX noted third segment posting billion. to against $XXX XXXX. levels board with gains our increased of million year-to-date of As These the are XX% quarter

persistent XX% in freight top double gains in to strength margin of pressures. will for and and line to EBITDA note the well This up digit results, spite increase margins a currency adjusted are addition quarter. holding headwinds gross you these sales In gross contributed

quality the sustaining and excellence success. performance Product Acushnet of and foundation our define are

We of launches success early product with are our forward. looking and pleased the fall

enthused product for wide six confidence the for first capital a priorities in of are introductions This nine teams ability and the and support track while scheduled $XXX momentum more new returned months. we have delivering capital the during the our largest these of record company's range Our programs since were dividend our against represents the of next to than to execute allocation company's repurchase preparing months shareholders first our programs million return of This through year. share implemented. and

results. balance through slide gains. right to regions production operations the are Now led XX% meeting turning these remains in Year-to-date and done and was with review in our sales preparation ball period. once improving especially build ABX which the strong, quarter sales for golf ball at Demand demand with increased has good the and between work up our Golf in X, the up inventories for the need team to to XX% strong all we will sell gains VX in contributing levels Pro to segment VXx contributing Pro by XXXX. U.S. X% striking

where up these and in last is increased Balls time at has still we are support excellent. balls were year-to-date. over The VXx and XX% and year. Golf them And to Golf new Pro of month vX quarter in launched this response across XX% like golf Titleist months, early business worldwide improved Balls now X% Titleist products inventories been tours club yet the see retail pro several past of to the have new would below XX%

are fueled starts the off by club launch. XX XX golf in after top late story Titleist the drivers fairways, their was by currently which quarter to and top of professionals are TSR played world the seasons. great used the and has PGA four three the driver the in Our new the what in September the drivers four brand men Tour and world; women on been for most of endorsement past terrific for validation

times our as Titleist which gear demand fit, due was by And with sales make supply up with our business. a XX%. service of the some QX progress large quarter pleased our and are we importantly, which reduce to second custom carryover strong clubs successful chain enhanced of products up levels order led which This to a and is pushed product the also into portion growth club new made throughout quarter supply had chain golf delivering launches with such delays. lead especially

nine For the the year XX%. of gear Titleist is months first up

recall confident reduce as in is the in to loading by we chain this times the may business fall. lead pressured as early decision gear Most U.S. receipts particularly notable XXXX. we by enter are availability that You front we year we challenges and was in the are taking done this our supply result logistics inventory improved risks our will and have reduce steps

continues shoes, X% the And chain for and to gloves. and to future build keep and strong demand quarter apparel a gain gloves is outerwear, footwear, with now apparel all golf double FootJoy FootJoy with up year-to-date digits. the a for for up posted XX% pace FootJoy supply

new successfully are Haven here Fair and the art has we fully center our diversified our at Our embroidery now our footwear production campus. on team state and operational of expanded capacity

great that that and enhanced confident teams and design momentum extra capacity generating. are are this will choice for capabilities service our support the growth We continued product

at region. a by our look for business quick Now

markets. the ex-U.S. from Global very in the across digit attributable as well variants single largely is have have by regional been participation have throughout see factors. the held mostly XXXX play game been healthy the year, we major U.S. the low offset up in weather we decrease of markets to related As said has and rounds gains

by in recent be experienced game that health participation the encouraged years. to continue as surge the strong momentum, the and against game's We holds

world. this with global market backdrop, U.S. gains we golf rest Korea have as year-to-date a delivered healthy of and in the EMEA, And

through our chain is business out QX. in the nine which off mainly and other up healthy play X% which is Japan are see conditions to and regions. overall of Rounds months launch of delays driver you are QX Japan with As TSR X% generally consistent moved into supply market our due and first year-to-date major

looking Now forward.

remain belief uncertainties. temper participation is outlook macro as built Titleist demand around we and golfer Our products expectations even and given the economic FootJoy looming for vibrant, that

Acushnet have many be the tends to dedicated is to that golfer experiences groups. consumer past pressures, While resilient shown than not immune consumer downward more

are service interest that our and anticipated in drivers our meet TSR early and and ability to product high front, will fairways and we enthused chain new quality the demand fairways levels. our and experiences supply about support fitting On are confident

are the We and in first launch. highest are track improvement. validation ball global golf tour upcoming the is on availability Ball for our improving raw as at reflect continuous expectations capacity Product balls operating and plants steadily for the launch material Golf development we meeting to prepare and company's the new Pro quarter. of VX full our commitment are

business. Turning to our FootJoy

can is in throughout investment product ongoing continue to larger our addition on optimize and FootJoy investments development technology XXXX to in expand enhancing support optimistic company strive deliver support as we prioritize engines, the operations that to partners and about it our XX% are initial was leading business fulfillment supply and to and our our to to golfers. response our collections the focused and are about XXXX. trade We service than And teams the in we capabilities and chain in

resilient our stability operating provide summary, as rate team global inflationary model In uncertainties. Acushnet and continue navigate and exchange we the to logistic

chain market see on the us game's record that before that We capitalize company term we our the confident well-positioned growth the to company's golfer opportunities structured long dedicated are of proven product management will and focus the and objectives. is innovation, support and and track on supply many

for Thanks morning. Tom. time pass call I your to will over the now this

Thomas Pacheco

elevated up constant across were increases continued XXXX reportable million expense currency were inbound million basis. gross $XXX million was Thanks, X, for the margin XX% yet freight showed the golf and The offset gear. be partially and from sales Gross up volumes a over compared consolidated XX% in segments dedicated year. up in XX.X% quarter third associates in for to partners versus was was thanking currency and last XXX their mainly QX net quarter higher up costs balls SG&A profit Acushnet. quarter year. trade the prior XXX for segment QX sales strong on start up all a for were strong, Starting by on and our Overall, David. like basis would slide to points. headwinds on and basis efforts I continues driven XXX X% by delivering in currency another X% all and growth and to reported constant demand by

we our last capabilities, in higher invest to Our which $XX teams was and XXXX. million did incrementally enhance in FootJoy from and million a customization good compared for the job which spending, $XX operations flat while XX% continue gear. IT to fulfillment in in Income as expense year. particularly was our was distribution than we R&D quarter, platforms balancing was

XXX XX months up QX compared million results, has improved million basis. last XX% gross to our sales the by and XXXX compared billion nine for profit Summarizing consolidated a currency up our were net X% EBITDA was up XXXX. of X.XX adjusted And Year-to-date to XX%. year, year-to-date of X% on constant first

XX basis XXXX. for XXX expense X% However, was nine gross solid are margins X% down compared million, and months SG&A to of the expense million points. up up first XX.X% although was R&D XX

$XXX than which income million, Year-to-date was year. is lower operations from X% last

of net as was Our for in months first first because was mix nine EBITDA year the QX EBITDA of down adjusted income slide nine effective primarily months and There year-over-year. and change adjusted earnings XX.X% reconciliation release, our first nine prior in the earnings well jurisdictional for the XXX the to the a as from rates in presentation. months the of XXXX in of down year, tax was of our XXXX million a of for the of the XX.X%, appendix X%

the balance of be of in our which XXX slide we million QX earlier the available XXX on and borrowings quarter. had of we cash million, credit continues under debt to was approximately refinanced outstanding end sheet unrestricted we to facility Moving revolving very At hand. about strong. had million XX, $XXX our Total

at ratio leverage the year. up of from Accounts at prior XX the XXX was receivable of times. end X.X was QX the QX million, million Our end

was DSOs we quality up Consolidated service end products. at to improved $XXX compared segments to of the and we high feel demand days. appropriate QX balances for were pleased continued returned year last the are inventory inventory our Inventory have to and meet to level trade an million. what by all is provide of two to across partners our

days XXX levels. were the inventory and end sales September, day at consolidated our line in is pre-pandemic of with context For which

changes million flow between into operations million most operations cash in XX to the the about the The in of the approximately of from year outflow shifted in $XX our the XXXX. $XXX $XX increase XX third notably has was last timing was of prior our flow million the be million result of spent cash bringing periods as the year, XXX a million, the in receipts decreases CapEx cash of months and working expect Cash to for for relative to compared first million year million. from total We QX a capital on nine to and were in quarter QX year. both compared to last inflow compared now primarily XX some CapEx million, year-to-date XX inventory. full We

We capital our program. against progress multi-year investment ball golf continue make to great strategic

XX. slide to Turning

per of brings to shareholders $X.XX payout board in share the and continued on on our free engagement December $XX to XX, capital million. a investments and record returning innovation, flow Our shareholders. about dividend approximately of quarter the $XX And payout our directors strong by to execution our golfer allocation capital product today, we generating of Earlier declared a December cash our payable strong year-to-date strategy and dividend continue financial to will fuels of operational total performance prioritize X. This of for capabilities. cash led million

$XXX XXX,XXX under quarter, a represents approximately and we share period to total for repurchased XXXX bringing million active almost million year shares of repurchase During shares most $XX X our end for count our the the third the the total million we X% our share a resulting million of outstanding year. beginning to-date almost At reduction had share authorization. of $XXX of current the remaining since repurchases of approximately of September, in our

remain XXXX. Assuming and continued authorization market financial conditions, strong complete expect of middle to our performance favorable by we the on to remaining track

capital returning capital generate total our return. disciplined to strategy our the acquisitions in a believe investing long to continue We of allocation shareholders business, compelling and will term executing

remain XX. of outlook our the industry enthusiastic about demand the and to our on golf overall products. for slide health We Moving

Inbound their Our retail healthy, rates supply continues freight and historical trending our chain inventories highs. are to strengthen. are lower from

X% the present, And as a normal headwinds than utilize at anticipate to of air levels. you and expect, be narrowed of million. full currency to Taking on We currency as our to billion continue EBITDA factors between the we inflation to updated for constant be have amount in net freight year a adjusted consolidated and over XX.X%. $X.XX million billion of However, projected to we our XXX service continued This our to costs XXXX the these expect $XXX year and protect confronting range impacts sales the negative our lead to input reflects sales million net we higher year in and currency year impact full consideration, up full future. we foreseeable guidance XXX range expect and of $X.XXX now times our be into result would full of guidance. foreign

our total the quarter, to solid shoes FootJoy momentum and in return to the another brands. demonstrating deliver conclusion, term and financial our remain Acushnet XXXX goals Titleist shareholders. ability long for of dedicated confident in and a We associates trade our In our partners achieve delivering and led strength

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

Sondra Lennon

Tom. Thank open line the for please we Operator, questions? you, could up

Operator

to first Stephens Daniel, question Of go Daniel [Operator Inc. ahead. Instructions] course. And go of please Imbro our today

open. is line Your

Daniel Imbro

health cycles, that Is for overall what the is a curious, year? morning, consumer as understand about as next thanks on point? measures history Is planning? golfer questions. then but also backdrop what reason a of about increases, everybody. data you remains internally taking industry gives you the the think of you And just I macro are at just just it macro trying mentioned healthy strong. it to David kind kind a industry your next start question. the the time into want Obviously when of go you the with and your home I'm guys you to gauging kind real values? dedicated Good tracking into of Is spending but confidence, year to price volatile and

David Maher

morning, Daniels. good Yes,

especially gets and risks lot from an that nowadays sell that, for at, see that's from economic data. we how we And been certainly indicate What And us the our results, strong terms we've So in the inflationary think is resilient what resilient for real it consumer EMEA beyond been us in we pleased healthy. look XX. for we time and look of headwinds. is us. starts mindful group. a if it's we're with the of said golfer you attention and with dedicated everybody at tend looming while I all through do caveat That track I'll fragility to the participation are certainly very said of and they in they be region a with,

in I up 'XX think, percent XX% and something this we're were XX year. We up

we like for We the out companies are outsized many pressures inflationary then some gauge us, coming participation golfer. to were they says of be they did project data that there resilience are [NGEF] seen is about U.S. surprise, X% But this impacting that they than XX%. say that committed our groups this going this years more the about that We've what call So centric, really, and up Daniel the No certainly region. an and right. we would that core five the of is see dedicated golfers uptick, also about golfers today is there ago. were concerned

items. headwinds with it's the larger I an dedicated not we do comment think it's We or durables to and consumables exact maybe indicative golfers And ticket the tend define match about of And up how that potential trends. a we generally than us. potential, clouds broader then while as think before better hold expect the

So product the seen more as golf tend balls to be that we one line, work through our our we've of resilient categories. historically way

Daniel Imbro

helpful. that’s Great

inventories. On year Obviously, whole. came the we clean industry as with this in a

remarks, to still industry now then the were through be. so a we you restocking you about said level below to And get you next far growth? back Right been? your to if say to XX% from how to grow inventory much revenue how I of guess a David, of XX% growth to of this year even think prepared where the that now. we're want overall tailwind the has where tailwind I during much running year

Thomas Pacheco

Yes.

was balls In lean, leaner would Let tend than to My to be be. historically we and case, me specific break clubs. like by really it to we category. and Dan comment our out we're was

we're to would where look inventories that's than it's be XX% expect When that channel like sooner sell competitive higher So the see footwear, end a to below some we're activity inventories a to I do we you an at subject, gear we'd say same to bit story, about going and be that. verse little may of in and of and and I X% a where off area a to normal about later. then And promotional may different some here return cycle clubs. golf think elevated see

our and chain. question supply backfill not activity but channel it as it's much we channel about in expect that's is on been think there's necessarily us as see know competitive we influence would we commentary an that do how business some And to the for to inventories entries some as about elevated coming first on your quarter promotional about really

XX which good materials We're given about. something the many in golf we We had can. this some team trying percent the of been wonderful we raw concerns feel very year, as And we a as black our up I done has now think ago. make year to balls were We've job. a

terms in prepared on about for what inventory mean, So I'm to demand will our we put forward, levels. it we look certainly a but think Daniel, say number I think of might about We it not as products.

We environment be channels. seen the and again remains see a think standpoint they our across about the we of macroeconomic to that caveat and And overall of what clouds how from looming will some vibrancy partners healthy retail of that some the is be a again materialize. the health once

Daniel Imbro

Great. the color this Thanks forward. luck and morning all so for best of much going

David Maher

Daniel. Thanks,

Thomas Pacheco

please. Daniel. Operator you, Thank next question,

Operator

Mike goes to Truist, question you. please ahead. next Thank Mike Swartz of The go

Your open. line is

Mike Swartz

Hey, guys. morning. Good

a uncertainties I guess for product around some Any questions. in just quick versus macro year. Are And months marketing two launches how size, call launch look the on product question next ‘XX given of you alterations then over might just ago? upcoming the two there any to XX different of the that or Just product the of a terms bit out release years or specific timing outs the some support? just new there? cadence in to plan

David Maher

Yes disjointed, that 'XX like would so maybe fallout I because of look would for bit the be the best the was 'XX a like, say from still little best, 'XX. 'XX. verse

what that what normal a get looks like be in cadence back and we'll the Pro So we to launch half. would consider on is VX first a

and shoes in launch half really update timeframe. will the fall and March, to Cameron track they're new -- half and FootJoy then [launches] programs. And expect in we spring line the would launch their on our for second We April

to I playing how to about would your question out, support working very it we're mode build still we In the do see terms inventories launches. hard of of in say second

all today, basically and product a what's needed today we not the different the generation support would elevated at new levels. a product we up launch. we're to easy sense and in prior was XXXX transition that versus And produce to It's from there XXXX, dial that seamless

build production VX they to going all Right. but this unlimited for ball can really is and team will to is without commentary, our to Pro support do do And launches. notably a golf It's commentary. So inventory prepare a so capacity.

half. is my production capacity product we earlier the are about said finite influence as first going how we remarks, enthused, do the have the in So we that excited team to, I launch. we in But will are launch

Mike Swartz

Maybe you helpful. quantify costs. get then you a said when on and to to that's And us continue just costs, for air the stuff sense to quick maybe mean of way for costs, maybe inbound give that what some that a Tom, see into market. freight you more normalize, question to on, but freight starting could you're any Okay, margins lower the expect freight or real to easing use

Thomas Pacheco

Yes, of to I in tricky we Because I guess freight look down. clearly, will question. going terms normalize rates, the in like what think, both come a air that's and normal ocean future think is

down seen. be way come However, XXXX levels back will to remains they the all to

As levels, higher XXXX. you to started as from said, but much I down back come we historic are still their rates they said, in have were they see than

will and look So like hard what XXXX. do some to We that say we'll when though relief will see anticipate, new get normal we there. in

promotional could that reasonably Haven't what's number. meaningful on is that gross discounting FX, really takes year, other mentioned caution which on huge a margins increased yet. which margins had it a quantified the But that that obviously be puts I with and impact as well. going be David our think and I all this come against along would But activity whether with

how quantify see at but to So this much situation freight we point. improving definitely exactly the hard by

Mike Swartz

lot a Thanks great. Okay,

David Maher

Michael. Thank next you, question, please. Operator,

Operator

to please ahead. go next The Altobello Joe goes you. James. question Thank of Joe, Raymond

Your open. line is

Joe Altobello

issues the that sales at in morning. and margin got we where Hey, are seeing a thanks, the guys. other are pressures? I'm FX, the of weighing profitability here You EBITDA kind was are promo but if of guess, Tom, this mean, that curious range, of I upper you Actually, QX. incremental year on mentioned there lower good range my to I into for Good the question. the end segue commentary end

Thomas Pacheco

promotional Morning, margins. headwinds to are as potential definitely and currency certainly, relates Joe, it activities yes, gross

really some in been point would business investments I making. of that things are other the the around The out we've

in invest We incrementally to continue IT our platforms.

gear. our customization as continue particularly We in fulfillment to and distribution, FootJoy enhance invest and our we in capabilities,

investment in point midpoint our will the over and up the seasonally you are and quarter look though continued compared at some QX QX last we be out business. of margin seeing to year. guidance, So going lowest million if is the that is to I pressure, $XX

So we're the second and going is to pretty where half year land. with the pleased

Joe Altobello

helpful, up parse the chance that currency Got follow drove it sales the what to that in XX.X% can volumes on out you kind were and very of between that how constant kind any much of that growth up? just your quarter, pricing and

Thomas Pacheco

It's split and to I line our all that we FX continues major into pressure significant would difficult volume to to those. continue say have see a of parse to markets but of top across and difficult impact price. sort on the

David Maher

I'll just FootJoy Hey, were say that gear on your clubs to less so impact Balls less pricing, little pricing, to ethics Tom piece your, Joe, balls pricing. well. certainly And and influenced add from so. would as answer far to I balls, by to

Joe Altobello

Okay. And last just one. one

impact from expect the less far imagine 'XX. next in the we've than year, me pricing so seen For you I to somewhat what be

David Maher

Yes.

'XX. generally provide increases we the look which our with gradual XX last the couple again, over of products of is think two a new pricing you're journey going We I our see fair reflection product the have benefit continue. in pricing forward what but last I taken certainly over And year a trend lifecycle, products. think pricing tends to you majority introduce as and the address think years do expect we months to I to from our we of price when more we slope,

Joe Altobello

Okay, thank you.

David Maher

Operator, Joe. question. you, next Thank

Operator

ROTH George, next Partners. The ahead. George Kelly Capital please go goes question you. Thank to of

is line open. Your

George Kelly

my taking for thanks everybody, questions. Hey,

couple a for of just So you.

freight. First, to margin back on gross the discussion

be Just Are you level you have XXXX? between that year using curious, in but volume next of the or mix kind freight consistent expected if to air just water I freight? mix rates to expect air you come kind of planning still next a early and understand the like curious would of year of it into more freight be

David Maher

Yes. part using we first to air launches. higher in the normal support product year, of to will would than say freight be I the levels our of continue

not I high ‘XX. levels. think more we've still the think won't return air as towards XXXX freight would I may normal be that from as the been we back the so of levels, say, freight of over to quite be and a to expect in ocean necessarily elevated it trend overall. year, course And mix normal And But would

George Kelly

second of then question state the general And consumer. the Okay. on

David, So, you reported to cautious. in you've strong. question earlier there I you're seen anything just to mean, anything talking maybe business you your about is out where appropriately Europe response be there an XQ, or were But and was just so trying uncertainties change, to the elsewhere in start the still, to is what

are much dynamic? of changing you seeing kind evidence of any So really

Thomas Pacheco

keep seen meaningful out many haven't We regions. too mind And swings, coming George. the in we're of season in

if always of we to the we're We question, any meaningful that's how really, do to have two segments. basis of about consumer think us But much to main certainly market is golfer really seen on that with we're We're a the is the bumps. to may things And again, participation. expect part seasonal. point end, coming snowbelt seen meaningful the closing themes in So drops? most of of slow sort and season. or surge for we haven't. normalize. several would pretty over end going in that and golf opening Sunbelt speed I any But we the be now. up their than And more tail not not But we're markets right resilient that haven't But the then we forks of are good thinking the understanding your And off happening also our future. the again, years fact if last be what's road

George Kelly

the how to know be. quantify just can But drag Any revenue of, to you help that thinking just last year. potential that for be Okay, year, next any us you if specific impacts growth FX any question be want next commentary where with around and rates don't kind then are now? for for Curious of me, I what would kind will helpful?

David Maher

still We're for XXXX. process planning the in

expect headwind So be we want specific. we that I do very to get say to a next currency think will I don't year.

think meaningful significant. don't I quite is the be we're will it but that won't anticipating think that this it headwind still year, be. and it will be I

George Kelly

And how say did this you year was much XXX?

David Maher

XXX? But yes.

George Kelly

Okay. Thank you.

David Maher

Thank please. George. next Operator, you, question,

Operator

next Alexander go Point. of please goes Compass The you. Thank Casey, to question ahead. Casey

is line open. Your

Casey Alexander

Yes. shut just future know be rounds damaged Kind of was territory from answered a any way? of I'm down, was one And but were input? to that off Or here that Hurricane October. XQ there's of my demand lot where that because a replaced courses played most happen, a didn't any other lot in particularly a of if if of flows Ian to and impact a needs lot you back wondering there provide in could stuff questions

David Maher

latter. of the Yes, up west former at coast. rounds, there of what there southeast damages. look more on the Florida coast and Casey, were Certainly were happened we And the last than the

So answer of closed and through were Thankfully absolutely. have and world and yes, enough partners, is impacted navigated fairly the remain well. golf But closed. it we the our who

So it on rounds, some as the lift don't into to in and you quarter your that some we as have is we it industries. as think negative to purchasing. a see get it it don't I relates But a in second we theme. an may do impact therefore it characterize I way. impact expect

Casey Alexander

Right, you. thank

David Maher

question, next Thank you, Operator, Casey. please.

Operator

today to Randy you. question Jefferies. Thank goes of And please Konik go Randy, ahead. final the

Your open. line is

Randy Konik

we little range want of, you're guess back on I a of Thanks. narrowing kind adjusted Yes. the go to guidance bit. dollar just EBITDA kind the to this

the that FX of narrow what just is of exactly a be clarify that just or just product is million plus clear, could to difference assumed to kind So $XX start? promo happen now range that

Thomas Pacheco

think narrowed I midpoint million. by the X the range at we

input with of sort overall, do Just currency. would with promotional costs. say the range the be higher I about I narrowing impact, And do to mostly clear to say less of there. activity. would has really the to

a then I investments to potential XXXX of think continued our more the in IT platforms that as and distribution that's earlier potentially additional capabilities. mentioned our And factor. we've also I make

really it's factors. those So

Randy Konik

change so Because promotional balance how to finished us and clarify you maybe give channel And ago on get inventories, Got have might is bit assuming how XXXX of perspective versus like you a a maybe whole past? of sheet, it. years that has you And could want if years think be promo in the little potentially are occurs, even may activity same activity. can could or David, the how perspective if how that second, about the for that some the a we than industry the again, customization. with forth, changed on assume, goods we and I how different so less guess there inventories normalization more of if you've seen that of on than less kind I rise and stuff or you're

David Maher

close do want Yes, that Randy, comments has promotional been years. question. good comparison the make zero the I where last that's our activity. much that as to has industry of couple And to for point in are to a And the been

than normal zero. question, the So a off when pre-pandemic. see we returning, it's and it did base the activity or talk what XXXX, about of saw, looks less And amount of promotional today still We probably to range as within a fair resuming your we well XXXX. industry different it than

be least clear is maybe resilient, part the golf at broadly balls to to want do because expect that this case, and I place quite certainly footwear of earlier again, about would look. as because we'll this first of are shortfall made our and in footwear comment We our optimal And I think that. inventory. I So

again, some also life to. of end you're to return of normal at levels do I accustomed be at lesser a then than sell going going think see cycle. that's off And think we're I But to

healthy industry, three, to of the ago. the to and activity, a it's we than at four accustomed it's were years think than they back will fundamentals some promotional healthier going see I we to XXXX lesser level be hey, going So commentary and while were that, are

Randy Konik

really That's I the super for helpful. Thanks appreciate that. help, guys. Got it.

David Maher

Thanks.

David Maher

your time As a next always, Acushnet. for to folks, attention in we And have We all great early appreciate and thanks season. I you getting year. back hope look with forward safe this morning. holiday and interest your you

Operator

Thank you. you joining. for This now concludes today's thank call.

may You your disconnect now lines.

Acushnet (GOLF) 3 Nov 222022 Q3 Earnings call transcript