How big of an impact will tariffs have on the golf industry? Let’s look to the industry leader in golf balls and gloves, as well as a top player in equipment.
Sean Sullivan, chief financial officer of Titleist and FootJoy parent Acushnet, this week told Wall Street analysts that based on company estimates, “we expect our gross impact in 2025 to be approximately $75 million on the assumption that the current rate regime extends through year-end.’’
The largest impact – about 70 percent – Sullivan said, relates to the China import tariffs rate of 145 percent, although it’s unclear how long the rate will remain that high.
“If we had not worked to diversify our supply chain over the past two years, our tariff exposure would be much higher.’’
Like most golf equipment companies, Acushnet sources its clubheads in China, Taiwan and Vietnam, which are shipped to the U.S.
“We are taking actions to implement mitigation plans, including adjusting our global supply chain footprint, initiating cost and productivity programs, both internally and externally with our suppliers and considering selective price increases,’’ Sullivan said. “Through these actions, we believe we can offset greater than 50 percent of the $75 million gross tariff impact during 2025.’’
Sullivan said Acushnet currently expects first half sales to be up low single-digits versus the first half of 2024.
“We expect most of the additional tariff impact to fall in the second half based on our current inventory levels. For Q2, we expect an approximately $4 million tariff impact. Including this impact, we expect first half adjusted EBITDA to be down low single digits as compared to last year’s first half.’’