Titleist surges on new clubs while FootJoy margins recover
- Titleist club sales jumped 43% in the second quarter of 2026 after the company launched its GTS metals early.
- FootJoy operating margins improved in the first half of 2026, easing fears that tariffs would destroy profitability.
- Acushnet booked a $38 million net benefit from tariff refunds in the second quarter.
- Management lowered its 2026 tariff expense estimate to $54 million from $70 million.
- The early club launch makes the second half of the year a difficult comparison, with sales expected to decline.
A strong core with easing margin pressure
The investment picture for Acushnet brightened significantly in the second quarter of 2026. The company launched its new Titleist GTS metals earlier than usual, driving a massive 43% spike in club sales. The core Titleist equipment business remains incredibly strong, with golf balls also up 6% in the first half of the year.
The biggest relief came from FootJoy and tariffs. Last quarter, investors worried that rising tariff costs would ruin FootJoy profits. But the brand improved its operating margin by 100 basis points in the first half of the year by selling more premium shoes. On top of that, Acushnet secured $38 million in tariff refunds and lowered its full year tariff cost estimate to $54 million.
The main challenge now is a matter of timing. Because the company pulled the GTS metals launch forward into the second quarter, the second half of 2026 faces difficult comparisons. Management expects sales to decline by a low single digit percentage in the back half of the year. Investors will watch to see if the company can protect its margins during that slower period as it builds inventory for the 2027 Pro V1 launch.
Premium gear for serious golfers
Acushnet makes money by selling performance golf products to dedicated golfers. These are players who care about quality and are willing to pay up for balls, clubs, shoes, gloves, and gear that might help their game.
The moat starts with brands. Titleist and FootJoy use what the company calls the Pyramid of Influence. That means professional tour players use the products first, giving the brands credibility with everyday golfers who want the same kind of equipment.
The model mixes repeat purchases and product cycles. Golf balls and gloves are consumables that golfers buy often. Clubs, shoes, apparel, and gear last longer, but new launches create sudden bursts of demand. In 2025, consumable products were nearly 40% of sales, while durable products were over 60%.
Manufacturing choices define the cost structure. Acushnet controls key parts of golf ball production, but FootJoy footwear now depends heavily on a third party facility in Vietnam. This helps with supply planning but keeps the company exposed to tariffs and international trade policies.
Brands that set the pace
Titleist Golf Balls
This is the flagship line, led by Pro V1, Pro V1x, and AVX. The company is currently running its plants near full capacity to meet demand.
Titleist Golf Clubs
Clubs include drivers, T-Series irons, Vokey wedges, and Scotty Cameron putters. The accelerated GTS metals launch drove massive growth in the second quarter of 2026.
FootJoy Golf Wear
FootJoy sells footwear, gloves, and apparel. The brand is pushing toward premium lines, which helped operating margins recover in the first half of 2026.
Golf Gear
This segment includes gloves, bags, and Club Glove. It grew a steady 6% in the first half of 2026.
KJUS and Other Apparel
KJUS gives Acushnet a premium apparel angle beyond core Titleist and FootJoy products. It remains a smaller part of the overall business.
Titleist dominates the mix
The mix uses Acushnet's 2025 annual disclosure: Titleist golf equipment was about 62% of sales, FootJoy golf wear 22%, and Golf gear 10%. The remaining 6% is implied other sales.
What could go wrong
Tough second half comparisons
Medium impact · High oddsBecause Acushnet pulled its new GTS metals launch forward into the second quarter, the back half of 2026 looks weak by comparison. Management expects sales to decline slightly in the second half.
Tariff policy whiplash
High impact · Medium oddsAcushnet imports goods from several countries, including Vietnam. The company secured a $38 million tariff refund and lowered its 2026 tariff expense estimate to $54 million. However, future trade policy changes could quickly reverse these gains.
Golf ball and driver rule changes
Medium impact · Medium oddsThe USGA and R&A are reviewing rules that could change how golf balls and drivers are tested. If the rules force major product changes, Acushnet may need more research spending or could lose some product edge.
Korea and Japan softness
Medium impact · High oddsInternational demand is not even across markets. While equipment sales remain strong in Asia, weakness in Korea and Japan persists within the wearables categories like apparel and footwear.
In one breath
What does Acushnet Holdings do?
Acushnet designs, makes, and sells premium golf products. Its biggest brands are Titleist for balls and clubs, and FootJoy for shoes, gloves, and apparel.
Why is Titleist important to GOLF stock?
Titleist golf equipment is the largest part of Acushnet's sales mix. In 2025, Titleist golf equipment was about 62% of net sales, and a new club launch drove a 43% sales spike in the second quarter of 2026.
What is the main risk for Acushnet right now?
Tariffs and tough comparisons are the main risks. The company faces a slower second half of 2026 because it launched its new clubs early, and it still expects to pay $54 million in tariff expenses for the year.
Did Acushnet get a tariff refund?
Yes. In the second quarter of 2026, the company booked a $38 million net benefit from IEEPA tariff refunds, which helped relieve pressure on its profit margins.
