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Home Daily Golf Briefs Daily Pulse for August 8, 2019

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Web Street Golf Daily Pulse
VOLUME 9, NUMBER 149                                                       
Thursday, August 8 2019

ANY IDEA WHO SAID THIS? “People are probably going to say this is a little bit surprising, but I've never played Pine Valley. I know it's always rated every year as the No. 1 course in the world but I've never been there.”

BRAIN TEASER: Can you name the highest ranked player in the FedExCup standings without a win entering the 2019 FedExCup Playoffs?

HOW’S BIZ? Acushnet, owner of the Titleist and FootJoy brands, reported second quarter financial results. Net sales were $462.2 million, down $15.9 million or 3.3%, from a year ago. The company said on a constant currency basis (factoring out the foreign currency exchange changes), consolidated net sales were down 0.8% resulting from a decrease of $8.4 million.

On a geographic basis, sales in the United States increased by 1.4% in the quarter on an increase of $3.0 million in Titleist golf balls and $1.7 million in Titleist golf gear, partially offset by a decrease of $1.8 million in Titleist golf clubs. Sales outside the United States were down 8.7% and 3.3% on a constant currency basis. On a constant currency basis, Japan was down 13.2%, EMEA was down 5.0%, and Korea was up 5.5%.

Looking at sales by product categories, golf balls were $173.3 million, an improvement of $1.1 million from the 2018 second quarter. Club sales were $107 million, down $10.8 million, while Titleist gear came in at $46.8 million, up $1 million. FootJoy second quarter sales were $114.1 million, down $5.4 million from a year ago.

Net sales for six months are $895.9 million, down $24 million compared to a year ago. Net income came in at $73.4 million, down $8 million from 2018. Titleist golf balls sales were 6% higher in this period, while clubs sales were down 15.5%. According to the company, the decrease resulted primarily from lower sales volumes of its iron series and wedges, which were in their second model year. The decrease was offset by higher sales volumes of TS drivers and fairways, which were launched in the third quarter of 2018. Titleist golf gear was up 2% and FootJoy reported a 2.0% decrease in net sales, but 0.8% increase on a constant currency basis.

“Through the first six months of the year, our business has been led by nice gains in Titleist golf balls, Titleist gear and FootJoy golf wear,” David Maher, Acushnet’s President and Chief Executive Officer, stated in prepared remarks “Our new Pro V1 and Pro V1x models are off to great starts in all global markets, and the Titleist ball count across worldwide professional tours is 73%, more than eight times our nearest competitor.

"Titleist TS drivers have been the most played driver at 28 of 35 events on the PGA Tour this season, validating our TS metals speed platform which delivers terrific ball speed and total game performance", continued Maher. "Gains in Titleist gear were led by strong acceptance of our new stand bags, the largest component of that business, and the new FJ Flex and Fury golf shoes have been well received along with the 2019 FootJoy performance outerwear and apparel lines. We continue to be excited about the second half of the year, as we are set to launch several innovative new products led by our new Titleist T- Series irons, which will arrive in golf shops later this month. Across all markets, Acushnet associates and our valued trade partners continue to do great work presenting and fitting Titleist and FootJoy products to dedicated golfers.”

WEB GEMS:

HOW’S THE WEATHER LOOK? Tiger Woods put himself on a pitch count Wednesday at The Northern Trust. Well, it was a pitch count at least based on how the 43-year-old normally prepares for a PGA Tour event. Woods didn’t hit a tee shot after the seventh hole during his pro-am round at Liberty National and opted to only chip and putt over the final nine holes. READ MORE>>>

ANSWERS: “People are probably going to say this is a little bit surprising, but I've never played Pine Valley. I know it's always rated every year as the No. 1 course in the world but I've never been there.”--Tiger Woods.

Webb Simpson (9th) currently is the highest ranked player in the standings without a victory entering the FedExCup Playoffs.

THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY MCANDREW AND SHOULD NOT BE CONSIDERED A SOLICITATION TO BUY OR SELL SECURITIES IN ANY OF THE COMPANIES DISCUSSED WITHIN THIS NEWSLETTER. CONTENTS OF THIS NEWSLETTER MAY NOT BE REPRINTED OR REBROADCAST WITHOUT THE EXPRESSED WRITTEN CONSENT OF TMAC GOLF