"We made good progress in the third quarter as we executed on our plan, managed costs and drove profits," said Jim Thompson, chief executive officer and president of Golfsmith. "We remain committed to the path we're on, and we're encouraged by our performance over the past two quarters and our management team's ability to attract and retain guests by evolving our brand, our offering and our service."
For the nine-month period ended September 29, 2007, net revenues increased 9.3 percent to $309.2 million compared with net revenues of $282.9 million for the nine-month period ended September 30, 2006. This increase was attributable to the net revenues from 15 non-comparable retail stores opened after September 30, 2006, but was partially offset by a 6.0 percent decrease in net revenues from the direct channel and a 3.5 percent decrease in comparable store sales.
The company reported operating income of $8.7 million for the nine-months ended September 29, 2007, compared with operating income of $12.2 million in the first nine months of fiscal year 2006. Gross margins and operating income continued to be pressured by a higher sales mix of lower-margin products and a decline in sales in the higher margin clubmaking business.
Operating results were also largely affected by increased SG&A expenses associated with the company's growth, the opening of 15 stores opened since September 30, 2006, and the incremental costs of being a public company.
Golfsmith International Holdings Inc
marketing@alchempro.com
