Carlos Gallagher

An analyst from Jefferies inquired about quarter-to-date demand trends and any signs of reduced international demand for American brands. They also asked for an update on the footwear market dynamics, including new entrants and channel inventories.

Answer

President and CEO David Maher reported that as of early May, business trends were 'normal' with no significant shifts in demand, either domestically or internationally. Regarding footwear, he expressed satisfaction with new product launches and noted that the top-line decline was a strategic result of selling fewer closeouts and rationalizing product lines. He characterized 2025 as a year of stability and improving profitability for FootJoy, with channel inventories now at appropriate levels after a multi-year correction.

Carlos Gallagher, on for Randy Konik, asked whether the company is capturing a trade-down benefit from the pressured Canadian consumer and sought to understand the underlying dynamics.

Answer

Executive Mark Walsh explained that any trade-down benefit from higher-income shoppers is being offset by significant pressure on the lower-income consumer base, who are largely on the sidelines due to eroded purchasing power. He expressed confidence in the growing loyalty customer base, which positions the company well for when the broader consumer environment improves.