Acushnet Reports $99.4 Million Net Income in Q1 2025, Despite Slight Sales Decline

Acushnet Holdings Corp. reported a net income of $99.4 million for the first quarter of 2025, reflecting an increase of 13.3% compared to $87.8 million in the same period of 2024. The company's net sales for the quarter totaled $703.4 million, a slight decrease of 0.6% from $707.6 million year-over-year. The gross profit margin also saw a decline, dropping to 47.9% from 48.4% in the previous year, primarily due to increased manufacturing costs and lower sales volumes in certain product categories.

The company experienced notable changes in its operational structure, particularly with the deconsolidation of its FootJoy footwear joint venture, which ceased production in Fuzhou, China, in January 2025. This shift resulted in a non-cash gain of $20.9 million recognized in the first quarter. Acushnet now accounts for its investment in the joint venture under the equity method, which may lead to net losses in future periods. Additionally, the company reported a significant increase in research and development expenses, which rose to $18.9 million from $16.5 million, reflecting its commitment to product innovation.

Geographically, Acushnet's sales in the United States increased by 1.4% to $424.2 million, driven by higher sales in Titleist golf equipment. However, sales in international markets, particularly in Korea and Japan, saw declines, contributing to an overall decrease in net sales outside the U.S. The company reported a 6.6% decrease in FootJoy golf wear sales, primarily due to lower sales volumes in footwear and apparel, despite higher average selling prices in golf gloves.

Looking ahead, Acushnet's management remains cautious about the impact of macroeconomic factors, including tariffs and foreign exchange fluctuations, on its operations. The company has indicated that it will continue to monitor these developments closely and evaluate opportunities to mitigate their effects. Acushnet expects to maintain sufficient liquidity through cash flows from operations and available borrowings under its credit facilities, projecting that these resources will meet its liquidity needs for at least the next 12 months. The company also plans to invest approximately $85 million in capital expenditures for the full year, focusing on enhancing its manufacturing and distribution capabilities.