Acushnet Holdings Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, net sales reached $620.5 million, a 4.6% increase from $593.4 million in the same period of 2023. The nine-month net sales also rose to $2,011.9 million, up 3.1% from $1,969.0 million year-over-year. The growth was primarily driven by strong sales in Titleist golf clubs, which saw a significant increase of 18.2% to $213.9 million, attributed to higher volumes of newly introduced products. However, Titleist golf balls experienced a slight decline in sales, down 1.0% to $190.6 million.

Gross profit for the third quarter increased by $28.9 million to $337.4 million, resulting in a gross margin of 54.4%, up from 52.0% in the prior year. This improvement was largely due to increased sales volumes in Titleist golf clubs and gear, although it was partially offset by a decrease in golf balls sales. Operating income for the quarter was $82.1 million, compared to $78.6 million in 2023, while net income decreased to $55.3 million from $57.0 million year-over-year.

For the nine-month period, net income was $210.0 million, down from $225.0 million in 2023. The decline in net income was attributed to increased selling, general, and administrative (SG&A) expenses, which rose by $40.9 million, driven by higher selling and administrative costs, as well as restructuring expenses related to the closure of certain production lines.

The company also undertook significant restructuring efforts, incurring $7.0 million in costs related to the closure of production lines at its Fujian factory, with an additional $12 million expected in Q4 2024. Acushnet completed the acquisition of trademarks from West Coast Trends, Inc. for $25.2 million in January 2023, which is expected to enhance its Titleist golf gear segment.

As of September 30, 2024, total current assets increased to $1.1 billion from $996.7 million at the end of 2023, while total liabilities rose to $1.4 billion from $1.3 billion. The company reported $99.1 million in cash and cash equivalents, a significant increase from $65.4 million at the end of 2023.

Acushnet declared a dividend of $0.215 per share for Q3 2024, totaling $41.8 million for the year, and continued its share repurchase program, having repurchased 2.2 million shares for $142.8 million during the nine months ended September 30, 2024. The company remains focused on leveraging its strong brand portfolio and strategic initiatives to drive future growth.