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Newton Golf Q3 net sales fall on reduced marketing

By Reuters News


Overview

  • US golf equipment maker's Q3 net sales fell 47% yr/yr, reflecting reduced marketing and new strategy

  • Company's Q3 net loss narrowed from prior year, aided by lower expenses and noncash gain

  • Company raised $3 mln in equity after quarter-end, but sees doubt about going concern


Outlook

  • Company expects to begin a dedicated marketing campaign for the 2.0 platform in Nov 2026

  • Fast Motion fairway wood and hybrid shafts expected to launch commercially in Q1 2027

  • Company says additional financing will be required to fund operations over the next year


Result Drivers

  • REDUCED MARKETING - Co said lower Q3 sales primarily reflected reduced marketing activity during transition to new agency and changes to promotional strategy

  • PROMOTIONAL STRATEGY SHIFT - Co moved away from frequent sitewide discounts to more selective promotions and increased prices for certain shafts

  • PROFESSIONAL ADOPTION - Professional adoption of updated 2.0 shafts expanded, with more than 80 professionals using the products at quarter end


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Basic Share

$0.23


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the recreational products peer group is "buy"

  • Wall Street's median 12-month price target for Newton Golf Company Inc is $2.50, about 142.7% above its November 11 closing price of $1.03


Reuters Recommended Reads

  • Nov 12 - Outdoor products maker Yeti misses Q3 sales estimates; cuts FY forecast

  • Nov 12 - Germany's Bike24 Q3 revenue jumps on strength across products and markets

  • Nov 12 - Solo Brands Q3 sales fall on lower segment demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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