Golfsmith International Holdings Inc announced its financial results for the first quarter 2007, ended March 31, 2007.
For the first quarter of 2007, Golfsmith reported net revenues of $77.7 million compared with net revenues of $74.8 million for the first quarter of fiscal 2006.
The increase of 3.8 percent was largely due to net revenues from 13 non-comparable retail stores that were opened subsequent to April 1, 2006. This increase was partially offset by a 9.3 percent decrease in net revenues from its direct channel and a 5.7 percent decrease in comparable store sales.
Comparable store sales for the quarter continued to be impacted by increased competition in certain major geographic markets and declining sales in the clubmaking business.
The company reported an operating loss of $3.9 million compared with an operating income of $1.9 million for the same period of fiscal 2006.
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Gross margins and operating income were pressured by a higher sales mix of lower margin products, such as golf clubs and electronic accessories, and a lower sales penetration of higher margin items such as clubmaking products.
The company's operating results were also affected by increased selling, general and administrative expenses associated with 13 store openings since the first quarter of 2006, increased advertising expenses to support a larger store base and national promotions, and increased costs associated with being a public-equity company.
The company will host a conference call at 4:30 p.m. eastern time to discuss the first quarter 2007 financial results. The call will be simulcast over the Internet.
Golfsmith International Holdings Inc
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