Total revenues in the domestic golf channel in the second quarter 2006 decreased to $27.9 million, or 9.0 percent, from the same period last year. Management believes that the overall softness in the traditional green grass channels adversely affected the company's sales in the first half of fiscal 2006.
Revenues from the international distribution channel were $13.2 million, an increase of 3.0 percent over the same period last year. Revenues were primarily driven by growth in the company's European subsidiary which is attributable to growth in Callaway Golf apparel, the Women's product line and the international corporate channel.
Second quarter revenues for Ashworth East were $8.1 million, an increase of 2.7 percent over the same period last year. Revenues for The Game, the company's brand in the collegiate bookstore channel, increased 12.5% primarily due to cross selling of Ashworth apparel into the collegiate/bookstore channel as well as the direct import headwear program.
Revenues from the company-owned outlet stores were $2.5 million, an increase of 63.9 percent over the same period last year. Since the second quarter of 2005, it added a net of six new outlet stores (eight outlet openings, two outlet closings) bringing the company's total number of outlet stores to 14.
The company reaffirmed its previously stated consolidated revenue guidance for fiscal 2006 of approximately $210 to $220 million but noted that the estimates could also be hurt by higher than expected expenses to be incurred in implementing initiatives to improve sales growth in the company's green grass distribution channel and the ongoing exploration of strategic alternatives.
marketing@alchempro.com
