Acushnet’s 2021 Monetary Report – Key Takeaways
- Acushnet’s 2021 web gross sales approached $2.2 billion.
- Up 33 % over 2020 and 31 % over 2019
- Full-year web revenue was practically $179 million.
- Acushnet tasks a comparatively flat 2022.
There are some mighty attention-grabbing tidbits in Acushnet’s 2021 monetary report. A few them are so attention-grabbing that they compelled us to return and evaluation Callaway’s 2021 monetary report.
And what did we discover? Extra attention-grabbing stuff.
To begin with, it doesn’t take Warren Buffett to look within the rearview mirror and see Acushnet’s days as golf’s largest firm getting smaller within the distance. Callaway’s acquisition of Topgolf noticed to that. However, regardless of the widening hole, the 2 corporations are extra alike than you would possibly assume.
And, relying on how you retain rating, they’re so much nearer than you would possibly assume.
As we dive into Acushnet’s financials, it’s time to remind everybody that we aren’t—nor can we faux to be—monetary whiz children. We’re only a gang who loves the golf enterprise and we prefer to learn. So with that in thoughts, let’s bounce in.
Acushnet’s 2021 Monetary Report: $2.2 Billion
The report, launched yesterday, says Acushnet offered practically $2.2-billion price of golf gear final yr. That’s a 33-percent improve over the pandemic yr of 2020 and a 30-percent bounce over the non-pandemic 2019.
I don’t care who you might be. These are fairly good numbers.
The corporate’s 2022 web revenue was $179 million, up greater than 86 % over 2020 and greater than 48 % over 2019.
I nonetheless don’t care who you might be. These are nonetheless some fairly good numbers.
Right here’s the place it begins to get just a little attention-grabbing. We are able to all agree Callaway’s $3.1 billion is a depraved huge quantity. However Topgolf was chargeable for simply over $1 billion of that complete. Meaning Callaway’s conventional golf enterprise—golf equipment, balls, attire and kit—was proper round $2.1 billion, only a wee bit south of Acushnet.
Objects within the mirror could also be nearer than they seem.
“We delivered great ends in 2021, together with 33 % web gross sales progress,” mentioned Acushnet CEO David Maher in a press release. “All whereas navigating unprecedented provide chain challenges.”
Breaking Down The Numbers
For the yr, Acushnet’s golf ball gross sales have been up 31 % over 2020, totaling practically $668 million.
Thanks, Professional V1.
Moreover, Titleist membership gross sales rose 32 % to $551 million, Titleist gear gross sales (luggage, gloves, hats and such) have been up 29 % to just about $193 million and FootJoy gross sales jumped 40 % to $580 million.
Acushnet says the expansion in membership gross sales was on account of larger promoting costs throughout all classes together with larger gross sales volumes throughout all classes. Besides one. It ought to be no shock to anybody who tried to purchase a Vokey wedge final summer time that Acushnet’s wedge quantity was down final yr due to our good friend, the worldwide provide chain disaster.
Acushnet additionally says all of its Titleist gear classes jumped in quantity whereas FootJoy noticed each larger quantity and better common promoting costs.
By area, U.S. gross sales jumped 34 % in 2021 to $1.125 billion. European gross sales have been up 35 % to $296 million. Japan was up 24 % to $118 million. Korea grew 31 % to $322 million. What Acushnet calls the Remainder of the World was up as nicely, practically 40 % at $216 million.
However like Callaway, Acushnet additionally posted a This autumn lack of $26 million. There are a few causes. The primary was a $4-million goodwill impairment write-off on account of Acushnet’s acquisition of European golf and ski attire firm KJUS. Extra importantly, Acushnet. like Callaway, began shifting This autumn manufacturing to merchandise that wouldn’t be offered till 2022, which meant a gross revenue hit.
Moreover, the corporate cites elevated inbound freight prices, uncooked materials and element shortages and better promoting, promotional and promoting bills.
Contrasts and Similarities
Once more, should you take away Topgolf from the equation, Callaway and Acushnet are neck and neck with what you would possibly name conventional golf gross sales. However how every firm bought there’s a little completely different. Callaway, for instance, is the golf membership king, with practically $1 billion in gear gross sales final yr. Titleist membership gross sales have been just a little greater than half that.
However, Titleist ball gross sales reached $668 million, practically triple Callaway’s complete of $235 million. If this ball warfare was a boxing match, the ref would have stopped the battle.
However, should you add up each corporations’ gear, equipment and attire gross sales, they’re fairly near even, with FootJoy tipping the scales in Acushnet’s favor.
Taking a look at earnings, Acushnet’s $179-million revenue on practically $2.2 billion in gross sales works out to round an 8.3-percent revenue margin. Callaway’s margin for 2021 stood at round 10.4 %.
You need one other similarity? For those who once more take away Topgolf from the equation, each Callaway and Acushnet are projecting comparatively flat 2022 conventional golf gross sales.
Yep, flat.
That one, fairly frankly, caught us just a little without warning.
The 2022 Outlook
In its 2021 monetary report, Callaway tasks 2022 income to be within the $3.8-billion vary with $1.5 billion of that coming from Topgolf. Meaning $2.3 billion will come from conventional golf gross sales. Since Callaway’s 2021 conventional golf gross sales have been roughly $2.1 billion, it seems Callaway is taking a look at a comparatively small $200-million improve for 2022.
Acushnet, for its half, is projecting 2022 gross sales to be simply over $2.2 billion. Since 2021 completed slightly below $2.2 billion, it seems Acushnet can also be taking a look at a comparatively small improve for 2022.
Now, we get $200 million in gross sales for a whole yr is a pipe dream for any OEM exterior of the Huge 5 however, significantly, what provides?
It could be straightforward to conclude neither firm thinks the post-COVID golf growth will proceed and the gear feeding frenzy will decelerate. That could be a part of it however each firm experiences anticipate continued progress in participation. And each say retail stock is lean regardless of document gross sales, which suggests retailers are turning their stock and transferring product.
An even bigger a part of the image could also be one thing that’s plaguing virtually each trade in 2022: that damned provide chain. Corporations are basing gross sales projections much less on what they consider they will really promote and extra on what they know they will really make and ship.
Extra merely, demand could actually be outpacing pandemic-strained provide. With rounds performed up 20 % and with greater than 800,000 new golfers taking on the sport within the U.S. since 2019, the buyer facet of the enterprise seems wholesome. It’s cheap to imagine some natural slowdown of recent gamers however the provide chain is bottlenecking practically each trade.
It actually helps clarify why golf’s two largest corporations, coming off record-setting years, are mainly projecting flat golf gear gross sales for 2022.
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