Amanda Douglas

Amanda Douglas asked David Maher about Acushnet's top priorities for 2026 to capture additional market share within the equipment category, given the healthy golf industry backdrop, and inquired about initial feedback from channel partners on new product launches. She also asked Sean Sullivan for expectations on gross margins in 2026, relative to the 2025 decline, and any differences between first-half and second-half drivers.

Answer

David Maher, President and CEO, outlined priorities as getting the product right, validating it through the pyramid, and investing in a world-class fitting experience, working closely with trade partners. He noted it was too early in February to provide specific feedback on new launches but observed general market health when weather permits. Sean Sullivan, EVP and CFO, stated that 2026 gross margins are expected to be relatively flat compared to 2025, despite higher input costs and incremental tariffs, due to pricing actions. He suggested gross margins might be slightly higher in the first half of 2026.

Amanda Douglas asked about Acushnet's top priorities for 2026 to capture additional market share in the equipment category, given the healthy golf industry, and sought initial feedback from channel partners on new product launches. She also inquired about gross margin expectations for 2026, comparing it to the 2025 decline and discussing front-half versus back-half drivers.

Answer

President and CEO David Maher outlined the core principles for growth and market share, focusing on product quality, validation through the pyramid, and world-class fitting experiences. He noted it was too early for comprehensive feedback on new launches due to the early selling season. EVP and CFO Sean Sullivan stated expectations for relatively flat gross margins in 2026, considering higher input costs and tariffs, and suggested slightly higher margins in the first half.

Amanda Douglas asked if Brunswick's value boat segment model lineup is now right-sized after streamlining actions, and how dealer inventory levels across value and premium segments are assessed for the 2026 season.

Answer

CEO David Foulkes stated that the focus on value and model lineup scaling will be evaluated, but he doesn't foresee substantial additional changes, noting the introduction of new products like the award-winning Bayliner C21. He assessed inventory levels as healthy across all segments, with premium inventory weeks on hand in the mid-20s, indicating Brunswick is extremely well-positioned for 2026.

Amanda Douglas inquired about the drivers behind the recent same-store sales acceleration in April and May, and how Boot Barn's pricing power has evolved since 2018-2019. She also asked for a quantification of the expected tariff headwind on margins and earnings.

Answer

CEO John Hazen noted that while Q1-to-date sales were strong, the +6% comp guidance for the full quarter does not assume further acceleration, anticipating a second-half slowdown due to price increases. CFO Jim Watkins quantified the tariff impact at approximately $8 million for the year, primarily affecting exclusive brands. He added that third-party vendors are also raising prices mid-single-digits, and while Boot Barn has historically absorbed 2-3% increases, a 5% increase is expected to soften consumer demand.

Amanda Douglas, on behalf of Matthew Boss at JPMorgan, asked for details on early spring sales trends comparing the American Eagle and Aerie brands, and requested a breakdown of the gross margin outlook, specifically regarding markdowns versus product costs.

Answer

President Jen Foyle explained that early trends were soft due to a strong prior-year comparison and some inventory out-of-stocks in key categories like AE denim and Aerie fleece, which she framed as a chase opportunity. CFO Mike Mathias detailed that first-half gross margin would be pressured by currency headwinds and expense deleverage, while the second half is expected to see improvement from better IMU and cost mitigation efforts, leading to a relatively flat margin year-over-year in H2.