Earnings call transcript Q2 2023

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Operator

Hello, everybody, and welcome to the Acushnet Holdings Corp.

Second Quarter '23 Earnings Call. My name is Sam and I'll be coordinating your call today. [Operator Instructions]

I will now hand you over to your host, Sondra Lennon, Vice President of Investor Relations and FP&A to begin.

ahead. go please Sondra, So

Sondra Lennon

Good morning, Acushnet Call. us for for Thank Corp's Second you Holdings Conference joining Quarter today everyone. XXXX Earnings

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

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

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

that unless stated. otherwise note to year-on-year on basis currency sales this also references Please presentation are throughout constant increases and a decreases

David. our trends X-month the I'll XX, we this June feel And comparisons, With X-month the of and we measurement referring over As the business. and call comparable ended performance to as best XXXX, period context to to turn results that, the when provides refer will or period. year-to-date to

David Maher

morning, Thanks, Sondra, good everyone. and

as Sullivan Pacheco since over Acushnet Acushnet's your thanking to Board Directors appreciate Sean the will XXXX, as his of on new served a team Sean years Committee CFO. interest Governance member has the the Chair Nominating contributions we Audit and for I our valued and by Company. having welcoming and been of few always, Acushnet As in Committee. begin past Tom

experienced the culture he a brings benefit his role. I'm and insights an addition our of Sean CFO, contributions also analysts vision investors deep and being our to addition will that and understanding our and a from In team great into to confident business. to to his is Acushnet new company's

Now to million our up year-over-year first another X% the quarter, $XXX contributed Gains $X.XXX $XXX constant in top a XX% XX% half, while which represents the last billion growth, a strong over EBITDA results. of Titleist this currency increase. of Acushnet and balls adjusted $XXX sales of delivering to delivered in golf period. for clubs quarter, adjusted million, the drove line million And increase golf gain sales for are a almost year. XX%, EBITDA of

successes helped throughout by first and recent product health Wyndham FootJoy many company's return have Harman's These been industry's pre-COVID half validate enthused with fuel Championships. Open These worldwide pyramid achievements Open at highlighted the influence and are tours the many ambassadors, wins supplemented U.S. Clark Brian and and to financial results of the across by Titleist and and golfers positive golf enduring participation even Supporting vibrant we brand company's the to are commitment activities. overall results, and quality. to stability the remaining the by as momentum performance and

last game have few outside million modest Total to covered the half, year first played to benefiting domestic are weather-related low rounds The single from XXX during continues generate compared up than for gains who entered be new more X.X% first declines half to U.S. sport XXXX. is past roughly as strong during interest the were a years. Some of digits the the and golfers increase rounds projected U.S. the worldwide XX% in golf the and versus gain

in increases by business our posted VX the XX% quarter and date. the company to both executed at look a Pro most half taking launch our Titleist balls successful second Now as first segment. golf

VX Pro VXx balls or to open, Harman, Titleist the the wins of roads U.S. Clark sport's all at played U.S. the Open their Girls victory. most to also Pro and major Junior U.S. by addition U.S. and inclusive Senior recent Amateur the Junior Evian U.S. In and -- Amateur, Open Titleist golf championships. on Adaptive of the winners Championship, trusted Women's Senior one ball inspiring was most Open

for contributing has team global golf the regions optimize with double-digit continues and growth tight to been strong VX inventories in are to the in Titleist meet new expect models to remain demand output Pro for models, supply into half balls, to Operationally, expand Pro Titleist our and to VX golfer approaching response global VXx all golf quarter. fourth all positive we ball exception of levels retail the markets. across Pro normalized as which

in clubs XX% over excelling Titleist golf are QX sales also both first up half. with the and

golf combined which our great to We Scotty deep TSR primary models our to are response new to commitment growth our seeing the year. Tour fueled introduced leading on response golf are fitting PGA the Cameron club strong putters are earlier with club our and entire by and momentum. played this year, are positive games custom drivers product our and having super-select catalysts another models most our line, the to

half. shipping the confident partners across a we irons, X-year trade we up, and our new our cycle. expectations know, successful which with are we execute month. club tours this our T-Series is ability team's worldwide Titleist begin to meeting expect over Initial high and you And later campaign in a stagger As to launches second next throughout response launch

up X% last throughout The reflects and lines, first year and gear the half. Titleist as the growth notably constraints golf bags was recalibarization for some compared XXXX shipments outsized face travel This for success of of first when to XX% ahead half. gear the product our supply also in and the we quarter business

elevated footwear and increased half. for declines results marketplace were flat golf see quarter to in FootJoy, Now reflect confront where the levels activity revenues These you in regions. the X% inventory we as promotional in about off many and sales

We to protect FootJoy's our are confident in leadership shares and position. ability premium

retail a However, expect return that healthier it inventories to until will levels. quarters few be

on context the providing while is on giving and XXXX, half FootJoy than down XXXX, compared footwear added you larger recent to is sense almost a first current category market For growth XX% the it perspective market, for footwear situation.

led finally, which And apparel performance recently we which continues posted was up continue the our U.S. the our the and we growth the of and by business, up FJ ongoing enthused gains in fulfillment development be to and by market, from half XX%. for its almost design, shoes trend double-digit capabilities outerwear with double revenues benefit customization digits positive half across as categories. apparel expanded

sales growth brief and driving the a XX%. gains the pack overview for second U.S. gear up and segments you region quarter Now see all across where first and U.S. participation balls, by strong half are market XX% with especially clubs our and demand Titleist Healthy up leading momentum. for sales

up markets For Japan declines. themes Titleist share Korea the gains across and portfolio, and weather-related similar half, flat helping was off with was our X%. to FootJoy headwinds X%. These EMEA finished offset

VX health product by the the the half irons. Now work market our looking has new preparing supply momentum fully forward, game's initiatives high of resilience good are for support chain to development core golf engagement Titleist standpoint, for the we From dedicated and readiness done consumer, brand of a momentum, and second our the golfer. Acushnet's on key and and our team and expectations Pro enthused capitalize overall

in is commensurate our our increase clubs, position balls we the believe million will investments investment and company We the before most growth businesses, capital disclosed year infrastructure back A&P Most previously X-year $XXX golf of half R&D. sustaining capital-intensive golf our investment operations Longer for making across are success. will significant ball opportunities the and in and us. the the with term, we

Acushnet past continue sheet to and capital the a strong company's long-term with for disciplined we benefit consistent approach And our practices, shareholders. the allocation leverage execute to and balance of

our As positioned your supported execute In will increased this investment has half into call pass priorities. we Sean. is ability back and elevated in attention of the heading well recent Sean in the I successfully outline, morning. core businesses confident and over to shareholder returns. long-range now levels year Thanks are Acushnet's our the company for will of summary, growth our to the

Sean Sullivan

everyone. my as work with to joined full look X. Acushnet Good I to team the time June at truly date. Company Thank on leadership enjoyed we experience you, have as Acushnet leveraging the a talented morning, the excited thrilled I'm here to David. the Board forward on I'm success and to and member associates build

the Turning results. to

half great a and quarter first strong XXXX. a As we of David had mentioned,

Second sales increased was quarter brand increase. Titleist sales portfolio, million, while XX% across our by a driven EBITDA X.X% adjusted $XXX higher net

momentum continued respectively. balls clubs, X.X%. half driven in of first the with XX.X% XX.X% sales brand respectively, increased the quarter Titleist Net gear by of while XXXX, XX.X%, EBITDA and and and growth by by increased was For adjusted and XX.X% our golf growing golf sales net

due X.X% of royalty was X $XXX clubs, Gross all in down offset allocated golf X.X% our up reportable slowdown segments. and in were not expense that sales compared partially in to to XXXX, freight due sales primarily which golf million, in are balls club category, higher across increase X lower also reportable volumes profit Quarter-over-quarter FootJoy by to in FootJoy the quarter lower declined golf apparel. Titleist segments. to and inbound sales an was the a products footwear

which expense million gross in the margin $X.X fulfillment across related footwear quarter or higher half lower offset XXXX. and was increased our QX, product of promotion XX.X% SG&A was lower shifted of profit IT-related basis launches optimization costs in to largely of $XXX in and up gross lower of Overall, all has segments. X.X%, These to million unfavorable new due manufacturing points, FootJoy custom costs and distribution down reportable were by increases due mainly absorption. expenses freight to back mainly inbound support volumes XXX expense to capabilities. to overhead advertising the the and due sales to

up to expenses. mainly R&D employee-related $XX higher expense million due of was

to and fourth Our the first quarter golf in due clubs amortization to quarter the XXXX of acquisition in of gear increase Titleist golf XXXX was of trademarks and intangible related respectively.

to million coming the debt was interest expense million Interest $XX borrowings with rates quarter $X due little than in in of increase a half balances. increase and the higher an more up from

from driven by a of shift tax was QX year, up primarily last our XX.X%, in effective earnings. jurisdictional Our XX.X% in mix rate

and Moving balance cash highlights. to flow sheet our

positions to the in us cash and strong manage support and well sheet program. flow support balance needs capital business, allocation investments ongoing working our free capital Our

leverage from with year-end, end last supply given both and the was state demand quality declined QX of X.Xx. current position ratio of quarter comfortable Our Inventories the chain. and and are inventory we net at in the our

we in We decrease prepare inventories for XXXX in before to expect increasing QX QX product launches. as

in million from was of flow capital, $XX working year, significantly cash half loaded are reach operations the due the expected primarily XXXX half mainly to the up XXXX $XX first expenditures given from still inventory. year fiscal plan. and half million Capital in changes prior to approximately back First were in

remain dividends business, Our capital disciplined and consistent previously form priorities with and product M&A. to innovation, capital those returning golfer including operational repurchases in investing excellence, the connection articulated, the in and shareholders share allocation of

returned Through record a share quarterly million $X.XXX X, roughly XXXX, on dividend cash June, Today, of with share shareholders cash $XXX in and of million dividends. approximately to we repurchases on shareholders to of per declared $XXX our September in XX Board $XX XXXX. payable September million in Directors

Magnus to had authorization. into our with activity share As current repurchase QX, repurchase million $XXX the given of XX, meaningfully filed expected under early share we that November. June our in continue expect agreement settle previously to is I remaining

our to for on XXXX. Moving guidance

We $X.XX to billion sales $X.X range billion. increased our have to net

half, Our to to still is expected momentum have VX up ball be at of Pro balls. VXx constraints XXXX. Golf available in we X% to compared back X.X% although supply remains continue the sales projected constant revenue Pro and currency on to

growth noting enthused half iron have and second golf With launch, will outsized against a this sales comping than capabilities to in and Metals sales larger initial respect worth it that gear is Metals are launch be up. half, chain to XXXX irons, due from segment second which custom we fit built to our Titleist fulfillment be a golf clubs, and order. about are are lower pipeline year in and last the mainly expected supply the as upcoming our caught inventory in to more

footwear marketplace have FootJoy wear we in elevated tempered our category. in segment the outlook Finally, the the given inventories golf

up EBITDA million, guidance to to million from million. has adjusted Our million $XXX $XXX $XXX increased to $XXX

currency. in Our benefit freight lower updated headwinds the range reflects reduced of and

unfavorable second promotional notably The to manufacturing activity, and half is see footwear overhead footwear expected absorption. in

XX% We expect of EBITDA third second adjusted to sales third about be half XX% quarter second XX% EBITDA. half to sales about quarter be of to adjusted and

tax with In focused very and our approximately performance half closing, rate we our beyond. XX%. first rate effective on forecasted with pleased and for fiscal half in line Finally, 'XX on our be our are to priorities XXXX is of expected executing first for remain

over I'll So Q&A. now for that, with turn to the call Sondra

Sondra Lennon

open Thank we could Operator, questions? up you, Sean. the for now line

Operator

first Instructions] [Operator question JPMorgan. Our comes today of Matthew Boss from

Amanda Douglas

Matt. for on Douglas Amanda It's

So as across market the and David, overall seeing backdrop maybe a you both And you're strong versus could see speak share gains? golf the industry international of performance categories? U.S. relative golf How you're in the elaborate to geographies, just across strength you club this you of to do much seeing function on then of could regions? bifurcation ball

David Maher

Yes.

strong. business ball golf first ball question, ball the on and which correlate been rounds-of-play, very we your On the certainly, to the -- side, demand ball always have

qualify X% includes the whole Mountain even England. bit here X% think West and New -- in the that I'll Coast declines I really near some a Pacific in And in and the that U.S. and regions, up X.X%,

So golf around a VX good to demand. rounds-of-play new launch Pro nice in Pro models. our shape some that VX a We've ball correlates had success very for nice us. It's here

the people are across product again, the centric is a very golf world and and playing really entire they're out the line. game as using start good that while playing answer And to story, So healthy, balls. off U.S. our we're around

Our business, to driver really said remarks, by club a franchise is I of year. in last launched great We end my drivers, start. led TSR that our as off

us success would and wedges our your products having very with in irons, much be then line I X with as mentioned for And well. we're expectations. putters

both operating with constrained, and our only challenge now supply still supply the right we're and VX XX/X. with would pleased in I while Pro golf facilities in ball VXx. categories. So where very club The tight add We're Pro is we're we're balls,

rounds couple happening key slightly the up down markets what's I'll The around I'll of the -- markets. key in and question of of U.K. we where second are the your a play slightly outside differential in touch rounds U.S. To U.S. on see Korea Japan, U.S., add

probably global as healthy of world markets, gear clubs terms seeing excess would our markets. in pattern in first markets, a just stable. footwear in in similar If said out, there's I our around and in think, a balls, foremost, any it prepared there's -- call footwear be supply that's all we and business, we're remarks, an there's healthy the phenomenon. weather all there's of But the

we I in, compete clubs, is that balls, will footwear. add the Footwear categories small. gear, of relatively

need I So think we to keep that into context.

rounds that differential in seeing slight market. is key the really, we're that So just a gives play and push U.S. of added an the variance to

Operator

question next of Stephens. Imbro Daniel comes from Our

Joe Enderlin

Enderlin is This on Joe for Daniel.

capacity. demand were the -- effectively sounds production what demand golf We like supply being pretty then ball to causing ball front supply more sounds like some taken Pro VX. with golf demand and are it steps remains match like the Sounds remains on robust, still around but wondering are issues headwinds what's it or

David Maher

don't call from that single it's I know out chain supply standpoint. a no Yes. -- there's

very with the Pro exception We've the strong still VX and first It's newer launch. line right? building last Our fourth quarter models and demand. VX Pro of of quarter the first good a throughout Pro since VXx VXx. the year, function producing support been to availability inventory half We're is Pro

now peak pushing will other demand. call of our up quarter. strong capacity. the facilities and that fourth we're the are time, there at demands no than few think summer months. expected We be catch a the would very get operating are to of to in that By we But third We front that out constraints quarter, end out closer and

in Right more that and selling we but in we're, first the happens We in fall the as respects, many chance to as make. sell. normalizes winter have we we we're a catch fall make what than the do than more up we think in quarter, now,

-- we long-term needed. a that don't know there's So fix

over the years. We are capital long-term talked about as part of plan we've that our investment

that on to our in couple the next capacity We and are VX will cycles. adding lines of Pro board come

add, of good think of I the out this fourth third think of earlier first a situation and my I the we the will just record -- year. of in marketplace half mean we or comment putting by end shape long So we're Pro we the current quarter. amount here term get in And and are we put into VXs in the we've the remarks, early

feel we relates and it of equilibrium again, So very time, a I back a and supply. into demand we'll to few output our good our and positioning get state think about in as months'

Joe Enderlin

Got it. Got sense. it. That makes

how seeing in channel? industry if As sell-through inventories an you're how seeing level? is increase? any a golf provide retail and you're see you follow-up, at the on maybe update promotions And any could you -- If

David Maher

Yes.

generally the industry have we has the remained experienced shape, good pretty golf supply as the past all chain years. speaking, remained over So has couple inventories considering -- in of Rounds-of-play we've an strong. disruptions are Demand strong.

So golf we're line. balls, they're as little characterization overarching good on they're a commented industry, like the in I again, we'd an shape. to running pretty than lighter And I'd in see. of say

a in be significant club the quarter, first pockets board. jumps launch may inventories following activity There but off few the nothing of

As is like. less We're us there. promotional clubs we've corrections. footwear build-to-order Titleist little right, was The largely running and business, footwear, seeing past, which area is out we susceptible a one activity makes to around heavier the called said bit a little some the inventory world than a golf in we'd

where X I'll promotional activity it point as the it make increased ago. final certainly, is overall space, to it X, from years is, in The golf relates was

was during no 'XX, activity marketplace. the there recall and may promotional 'XX in You virtually

as in to think reactive, some had intentional our but seen have example, VX cases, promotional franchise. We of in activity, do with resumption promotion right? historical Pro a We opposed was a spring the it near an nowhere levels, as I

promotions so some or reactionary. may holiday see think are I intentional that than you more corrective

near overall, where we're line And industry again, starting be. think activity, with levels So saw an see to in promotional in the to uptick pre-COVID. the nowhere I we ought

Operator

is Our Casey Alexander from from next Compass question Point.

Casey Alexander

there agreement us questions. I a is and June to X XXX,XXX the Magnus? would just repurchase subject you then how couple be after bought program, way can have tell share of the One, repurchase on of any the much with was

Sean Sullivan

this is Casey, Sean. Yes,

been -- XX-Q since what some think I at the you'll of we that has our the of file have least when in the later quarter. you'll end activity today, information listed have terms

Casey Alexander

No. that X, was when June which is the in mean after was XXX,XXX agreement the But quarter Magnus that bought I the with began.

Sean Sullivan

Yes, the don't I apologies. believe that that do to don't talk there do disclosed -- check we No, a number that's liability I apologize. of we believe over my information. that -- roughly queue be. I've is know I record probably the to sorry would I that think that is Casey, that, quarter. I in -- X/X estimate. I may I don't disclosed, But you.

Casey Alexander

That's approximation fine. helpful. That's Okay. an just is

fanfare away. more a of sand-driven Or sort that tend it market behind fade here? time, to bunch some in a Secondly, is of Is into and that business them, much of the footwear, -- think this versus share capital about start-ups period competitive has a for number correction? have that been of time. But start-ups the a relation come come talking seen of over I of seen demand some an to how mean, in before, we're kind with this When what in almost element. that we've with I grab we've driven cyclical increase it's they

David Maher

you're right on. Casey, No.

for bit than we X X to in at to you've of compression. reality think I category. chains X X a is bubble of peg appropriate we happened is supply influx it what's about there's results may price the Part -- supply competitors. parts. new higher footwear which so parts. a an the It's maybe be seeing it's an extent, is are That XX% forecasting and overzealous, got would Part

a demand ago. from bit as demand little story of bit year the There's a as a a here down well is

as fallen prices a have And some bit. that of

XX% did It of through the but is footwear just bigger before. first than right. business this starting starts still the It it it make This in contextualize this seen state our we've I excess the about So business, point to I with new supply. you've march is this starts point lot of seen the think and function supply. That's -- this with was we is way competitors. not XXXX. you're seen a it. time earlier do we've footwear the

Sean Sullivan

Casey, this Sean. is

clarify. Just of shares and It's June stock to back XXX,XXX since X. go

be queue will that in So when the today. filed it's

Operator

next is Our Truist Swartz of from question Michael Securities.

Unidentified Analyst

wondering Datatech could was on you This just is pullback comment could Lucas wondering give June. some that. I in for share on color data on was ball was some for There if and if Mike. I you the

David Maher

we're Yes. the particular. on XX-day We don't would year really time, golf I balls get to the strong too success point of in focused and in blocks having

I think is your question ball driven.

up and are XX% inventories shipments we'd our than said, I've like. our are As lower

with So of the ball business. happy we're the golf very state

in loyalty a hit was earlier our There unique promotion the that May. buy X rewarded year where component we mostly and April ran get X

there what a think strong we're inventories we're gaining sell-through support our with Certainly, are where overall, are we again, maybe on levels our And front. just inventory are share. And robust year environment. we're would that's We out But like. less the really state that pleased to sales VX than overall, very of seeing. ball strong. acknowledge contributing the do very lean golf Pro business. So pockets ball there We

Operator

next from question from KeyBanc. is Zatzkin Our Noah

Noah Zatzkin

me. guys the for and hear to softer game X high-level obviously, resilient. about continue resilient elsewhere. has and and of consumer see have macro so a been Just pressure a you been golf much Obviously, And

feeling maybe you in So as you're confidence the comments here golf how of well be core the as health consumer any what on guide about would helpful. just color some the gives on raising

David Maher

Yes.

years. consumer. historical the passionate, of highs This and terms couple middle resilient, and their golfer. acknowledge do We income above. target Your in coming some they're of we're of in purchasing question the dedicated really to heart strikes our last participation They're off

are here record said, So X.X%, August terrific, I XXXX. levels. think expectations we're right? in approaching a guarded we bit early That rounds Up are and on for our

X% XXXX. the think record I of within saw were of I

Acushnet's and consumer strongest us performance target the our think engaged. So is and front the -- balls are responding well to The front. for ball categories they're are club that clubs. And our I well consumer on stories

So Like we're spot sweet really watching everybody, of and, purchase which this But particular, with really we're golf been for we've participation golfer, Acushnet the that, point, And carefully the our terms pleased add is in the seen to levels. this consumer around dedicated businesses. to has we've positive. what share and levels pickups I'd story. which to our some portfolio, add seen in

Operator

Randy of next is Jefferies. Our question from Konik

Randy Konik

I guess, David, another -- a follow-up to the last question.

Just have of I about continued point? most always been for you've you've about and guess what's all Where most you surprising -- because you you seen the decades industry strength tempered. the obviously at surprising the this this industry? measured What's and

David Maher

sport how a to we're very a monitoring golf place has carefully obviously, I we've highs, and rounds careful Randy, to you a as with 'XX and in been the how prioritization whole normal new finds the XXX regards people's or of And I pre-COVID despite of is what compared their holds lot were activities, -- right? And were very There they been changed played million of a normal. Well, up money. conservative say We've pleased XXXX. would than XXXX. its ballpark return lot coming strong returns XXXX held participation the old with say we to operate. know in historic would in either off in been time world we've more as

but we hold on felt ought pleased historic a step-up were the whole off strength be We was such to all all on we're this about. we careful it, coming to that, feel think, certainly of see lot and I about, levels. high to holding something hey, is, of of do cautious vibrancy and we we're meaningful it terrific, So which to good and game careful the real and

years then think their today that golfers, And it way X, golf right? I in people that. in X be added a X And We've meaningful a into they We than the couldn't has the added final that industry more lives X, seeing would is before of years also an did core component you're of fitting participants that. running decade are ago. say

think I in the the alone last U.S. years. million over X So near $X.X

X, from at participants. while by is incremental they years everybody more at ago, the in new U.S. playing not played offset have X So the that's than rounds may clearly level

rightfully the up our, think, how watermark off not again, conservative well expectations high the of observation biggest as So to and game the strong holding the but very XXXX. surprise, biggest compared coming is is I

Randy Konik

company Very revenue you I on, helpful. in give now? us And for kind just seeing gross from another or sort on lift and can that and profit on the to the and seeing? say. just customization anything lastly, that yourself particular, of obviously right you Because just think leg perspective ASPs margin doing been some are well. trends do Where fittings, and provide of curious just they And own you're I amount your the gross the dollars? industry or profitability of good those lift some that's of area at you're that's say, your kind what business, where you're industry incremental or then a go as of when custom of is your perspective let's look maybe ballpark-ish should What's incremental

David Maher

Golf Randy, talking You're clubs, right? clubs?

Randy Konik

Yes.

David Maher

Yes, yes.

and our world. frame So we've been around custom markets been important it's fitting in the years bit in some the business, U.S., in shorter little a very part a game the going XX of back time

and think I'll expert themes think going products. We have consumer. with with experience with highest level. key to best an our give We best we to very satisfaction we products, best And the way it's the right? great think start our the the consumer the is fitting, experience consumer very the I know have

the that's biggest win. So

business less in maybe That's net to closeout Then us far rather. closing experience earlier, and of less is important consumer about swings. product inventory less club and means what an of made the the what or deliver we'll very obsolescence the of risk think positive highs to and for as the a get combination risk the to inventory of to know we just we says we are right, which we lows some I less -- expert at down our with the realities it piece consumer and of really fit. far But and club great most susceptible the retail, far obviously general, of comment business,

component club leverage it leverage a allows -- our final We've very expertise have throughout who benefit leverage and to are our of and business. we really retail from benefit fitting expertise it us partnership got the adept partners and our to the lot allows us at terrific of base. skilled The and of expertise and to it to pros is, their

our And through centric it's anticipate today, bit fashion over great retail, time a time time been out the make Japan us, is traditional stock business. U.S. still Japan. world. long way do because it's market again, outlier into where party stock business that's The trending to been our to you We've around time will at a long So market is late ship opposed sell the in term, of custom say, order. if long will, to time. it comment as mostly a I the a I a to for from we to and an it more more in one a the run custom it built we've --

custom before, one but accelerate about of longer-term the talked to Japan that our movement with our of is opportunities business. we've So fitting

Operator

from question next Partners. is Our from Tigress Financial Ivan Feinseth

Ivan Feinseth

players? doing into see you you of bit to the new and of do on going are and initiatives you your where forward? you are -- game? And -- detail people the results. make how marketing great traction who the versus with best Or to them give a existing Can are marketing you Congratulations how little

David Maher

Yes.

reaching So audience. our But speak to or is new balls them, fitting right? we're golf efforts, So the our sweet target consumer of that golfer, enthused Ivan, most our in to that's earlier efforts. core did and half year, in we're guess, I the -- back advertising launch. about and we say point I sort confident regularly I'll make of comments tend whether through our Acushnet the this our of dedicated iron our the results spot particularly of all we're the advertising with to

those of focus behind with of pleased core golfer commensurate the opportunity. the aligns our with product categories put drives the lines. so standpoint, we're always to prioritization so well size our entering more a So going who new this much the and with from muscle certainly marketplace, business our golfers on is But dedicated while A&P it we're

we've It for how So intend and always that's on we to well us works stay it. approached that path.

Operator

question George is from Capital next Our of Kelly Partners. ROTH

George Kelly

So a for couple you.

I First you then that an to much you can was you again? through to keep trying go of with the us And when share on the you How is did expect authorization. but one, repurchase estimate current exhaust call, just remaining? your authorization? give up

Sean Sullivan

would the but and there's we previously, $XXX given XXXX. on I think year, would million plan said we've QX about agreement this remaining participate through we an meaningfully not did authorization, Yes, Magnus more the extinguish give later probably expect early outlook to early as that just you I into that

George Kelly

half. in quarter, second But you. us between question breakdown you in a strong Can And the pricing? you ballpark and what sticking just that. with if really first then ball the give the business Okay. have growth volume Just was for such with breakdown your

Sean Sullivan

you did as volume, mostly VXx the We George. It's price, on the Pro and know, take VX Pro Yes. model.

So just talking what is about speaks was the have majority David business. again, volume, in to the ball -- but we momentum the

George Kelly

Okay. Excellent. question then last for And me.

that, there and through chain inventory of when inventory the real-time margin, you curious number? I there the period now Or inventory was I'm a your in a kind bunch kind your higher issues. of kind of it's mean flushed mix? of more all cost costs a just is and all gross your sort has Regarding if your inventory still normalized of your of with dealing is -- were inventory, of your supply now

Sean Sullivan

I understand question, have I we your cost, think input seen increase. those if Well,

our about, where the come As again we're I talked quarter and certainly expect would they're same levels, inventory down third sequentially, in the I then through fourth. building very comfortable the cadence They've at.

I all board So of think costs the us. inflationary input given across have pressures affected

our comfortable not, or but we're the I it that. said where but want So your are. I if to don't I'll at with leave know repeat prepared inventory question what we answers that remarks, in don't levels

George Kelly

Okay.

bring well, to time. -- XXXX but last Let now as period so try lot XXXX year costly it late a is and me long one to when was I year a There your ago more was of last stuff in issues you and mean, and kind U.S. inventory that of we the all flushed All through. looking were for dealing balance? more supply a Are fair? higher-priced has things? inventory more and these sold normalized Is your chain with at that pricing environment

Sean Sullivan

Yes.

I a normalized correct? think we're state, more to getting

David Maher

a in your day. for great again of to after third forward everybody, Hope and quarter. as summer our nice you rest have we speaking and interest a Acushnet And the thanks Have your look Company. attention, always,

Operator

call. for Thank This you, everyone, concludes joining. today's

You lines. your may now disconnect

Acushnet (GOLF) 3 Aug 232023 Q2 Earnings call transcript