Acushnet Holdings Reports 5.4% Sales Increase to $720.5 Million in Q2 2025

Acushnet Holdings Corp. reported a net sales increase of 5.4% to $720.5 million for the second quarter of 2025, compared to $683.9 million in the same period last year. The company's gross profit rose to $354.3 million, up from $333.5 million, resulting in a gross margin of 49.2%. Net income attributable to Acushnet increased to $75.6 million, or $1.26 per share, compared to $71.4 million, or $1.12 per share, in the prior year. For the first half of 2025, net sales reached $1.42 billion, a 2.3% increase from $1.39 billion in the first half of 2024, with net income rising to $174.9 million from $159.2 million.

The company experienced notable changes in its financial performance, with a significant increase in net income driven by higher sales volumes in Titleist golf equipment, particularly golf balls and clubs. However, FootJoy golf wear saw a decline in sales, primarily due to lower footwear volumes. The increase in gross profit was attributed to higher average selling prices and improved sales volumes, although it was partially offset by higher manufacturing costs. Selling, general, and administrative expenses rose by $14.2 million, largely due to restructuring costs associated with a Voluntary Bridge to Retirement program initiated during the quarter.

Strategically, Acushnet deconsolidated its FootJoy footwear joint venture, which ceased production in China and shifted to a third-party supplier in Vietnam. This transition resulted in a non-cash gain of $20.9 million recognized in the financial statements. The company also initiated a restructuring program aimed at reducing operating costs, which is expected to incur additional costs of approximately $7 million in the latter half of 2025.

Geographically, net sales in the United States increased by 6.4%, while sales in EMEA rose by 13.7%. However, sales in Japan and Korea declined slightly. The company reported a total employee headcount of 3,200 as of June 30, 2025, reflecting ongoing adjustments in its workforce due to the restructuring initiatives. Acushnet's liquidity remains strong, with $58.8 million in unrestricted cash and cash equivalents, and it has $383.3 million available under its multi-currency revolving credit facility.

Looking ahead, Acushnet anticipates continued growth driven by its focus on innovation and quality in its product offerings. The company is closely monitoring macroeconomic factors, including tariffs and foreign exchange fluctuations, which could impact its operations. The management remains optimistic about leveraging its strong brand presence and expanding its market share in the golf industry, while also navigating the challenges posed by the current economic environment.