Acushnet's Q2 2025 Earnings Call: Navigating Contradictions in Demand, Pricing, and Global Markets

Inventory and demand trends, pricing strategy and consumer response, tariff and inflation impact on pricing, international market performance are the key contradictions discussed in Acushnet's latest 2025Q2 earnings call.



Strong Financial Performance:
- Acushnet reported worldwide net sales of $720 million in Q2 2025, a 5% increase over last year, with adjusted EBITDA up 9% year-over-year.
- The growth was driven by strong momentum in Titleist Golf Equipment and steady growth in the U.S. and EMEA regions, despite macro uncertainties.

Geographic Market Performance:
- The U.S. business maintained strength despite a slight decrease in rounds of play due to unfavorable weather, while EMEA region sales increased by 6% in the first half.
- The growth in EMEA reflects gains in Titleist Golf Equipment, particularly in the U.K., where rounds of play are up 20% through June.

Premium Strategy and Product Innovation:
- FootJoy sales were down 2% in Q2 and 4% in the first half, aligning with expectations as the company shifts towards a higher concentration of premium performance footwear.
- This strategy, along with the reduced closeout volumes and elevated entry-level price points, is positively impacting FootJoy's market positioning and sell-through trends.

New Product Launches and Consumer Demand:
- Titleist Golf Equipment sales increased mid-single digits in Q2 and the first half, led by Pro V1 golf balls and GT Metals, with equipment revenues up 10% compared to the same period in 2023.
- Strong consumer demand, healthy participation in the sport, and the success of new product launches contributed to this performance.