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Titleist owner, other golf equipment firms enjoy 2Q sales growth with increase in players
The increase in new golfers boosted the second-quarter net sales of Acushnet, owner of Titleist and FootJoy, by 117 percent.
Titleist golf club sales were up 111 percent, while Titleist golf ball sales jumped 98.1 percent.
Over the first half of its fiscal 2021, US sales went up 75.2 percent.
Callaway, which owns several golf equipment and apparel brands, also enjoyed growth.
Earlier this month, Callaway raised its financial outlook for the third quarter and the entire 2021, citing its brands' overperformance and a mitigation of some supply chain disruptions
In June, Callaway CEO Chip Brewer said the golf equipment market is going to be larger coming out of the pandemic than coming in with more people joining golf courses, making the long-term trends quite attractive
Meanwhile, Dick’s Sporting Goods, a store that sells golf products, said the sport is one of its growth drivers in recent quarters.
The US golf equipment market is estimated at US$2.3 billion in 2021.
Executives from both Acushnet and Callaway cited the ongoing supply chain issues in Vietnam as potential road bumps ahead.
However, it is still unclear how the supply chain issues plaguing other industries will impact golf equipment, which could limit growth.
Jinhyeok Jeong, founder, and CEO of South Korean private equity firm Centroid Investment Partners, which acquired TaylorMade Golf for $1.7 billion in May, said that the golf goods industry is experiencing high demand and increased participation, and strong long-term opportunities around the world.
South Korea is the world's third-largest market for golf after the US and Japan.