In the midst of the Covid-19 crisis, Titleist and FootJoy parent Acushnet Company has withdrawn its guidance for 2020.
Acushnet said it also is suspending stock repurchases due to the Covid-19 pandemic.
In a filing today with the SEC, the company said it expects that “disruptions in demand and production’’ will continue to negatively impact results.
From the filing:
“As a result of the spread of COVID-19, the Company has been faced with disruptions to our business to varying degrees across many regions. While our businesses in Korea and Japan have started to recover following an initial period of disruption, and while our joint venture FootJoy golf shoe facility in China is fully operational, our businesses in the United States and Europe have more recently been impacted by government ordered shutdowns. These recent shutdowns have impacted facilities in the U.S. and Europe and negatively impacted overall retail demand. As a result of these shutdowns, we have had to suspend operations at our Massachusetts ball manufacturing facilities and our California club assembly facility. We are currently maintaining limited receiving and fulfillment capabilities at our distribution centers in both Massachusetts and California. Currently, in the U.S. and Europe, sales in the golf industry and in our own business have slowed considerably, with many golf courses, golf shops, and retailers temporarily closed. As a result of the earlier disruptions in Asia, the recent events in the U.S. and Europe, and the overall uncertainty related to potential impacts of COVID-19, the Company’s financial results will be materially impacted.’’