Home / Knowledge / News / Apparel/Garments / Golfsmith Chairman pleased with second quarter results
Golfsmith Chairman pleased with second quarter results
06
Aug '08
Golfsmith International Holdings Inc announced financial results for the second quarter of fiscal 2008 ended June 28, 2008.

Second Quarter Highlights:
- Net revenues increased 4.0 percent to $130.0 million for the second quarter compared with net revenues of $125.0 million for the second quarter of fiscal 2007. The increase includes net revenues from 12 net stores opened in fiscal 2007 and a 0.5% percent increase in comparable store sales, partially offset by a 9.3 percent decrease in net revenues from the direct channel.
- Operating income totaled $10.4 million compared with $7.7 million in the second quarter of fiscal 2007.
- Net income totaled $8.6 million, or $0.54 per diluted share, based on 16.0 million fully diluted weighted average shares outstanding. This compares with net income of $6.8 million, or $0.43 per diluted share, based on 15.8 million fully diluted weighted average shares outstanding for the three-month period ended June 30, 2007.

Martin Hanaka, chairman and chief executive officer of Golfsmith commented, "We were pleased with our second quarter results, especially considering the state of the consumer and a promotional sporting goods sector.

Through selective promotions and prudent inventory investments, we achieved slightly positive same-store sales and net income growth of 26%.

Looking ahead, we will continue to focus on controlling our expenses and managing our inventory, as well as executing on carefully managed promotions to drive sales.

While we are planning conservatively for the second half, we continue to expect our 2008 earnings to show meaningful improvement compared to 2007.”

Year-to-Date Results:
- Net revenues increased 3.2 percent to $209.2 million compared with net revenues of $202.7 million for the six-month period ended June 30, 2007. The increase was due to net revenues from 12 net stores opened in fiscal 2007. This increase was partially offset by a 10.2 percent decrease in net revenues from the direct channel and a 2.9 percent decrease in comparable store sales.
- Operating income was $5.2 million for the six-month period ended June 28, 2008, compared with operating income of $3.8 million for the six-month period ended June 30, 2007.
- Operating results included a $1.8 million charge, or $0.11 cents per share, incurred in the first quarter of 2008 which was related to restructuring costs, severance and search fees associated with organizational changes.
- Net income totaled $3.1 million, or $0.20 per diluted share, based on 16.0 million fully diluted weighted average shares outstanding. This compares with net income of $1.9 million, or $0.12 per diluted share, based on 15.9 million fully diluted weighted average shares outstanding for the six-month period ended June 30, 2007.
- During the first quarter, the Company closed two older format stores, associated with the acquisition of Don Sherwood Golf & Tennis, as leases expired. The Company plans to open one store in the third quarter of fiscal 2008, which will replace these locations.

As of June 28, 2008, total inventory was $101.1 million as compared to $102.5 million on June 30, 2007 and average comparable store inventory declined 3.2%.

Outlook:
For Fiscal 2008, Golfsmith continues to expect overall sales growth to be slightly positive with slightly negative comparable store sales.

Earnings growth will be driven by reduced operating expenses and marketing costs as well as lower pre-opening costs.

Golfsmith International Holdings Inc


Must ReadView All

Textiles | On 20th Aug 2017

PetroVietnam, Vinatex discuss reviving PVTEX plant

Discussions are under way between PetroVietnam and textile and...

Courtesy: Mexx

Fashion | On 20th Aug 2017

RNF acquires Mexx fashion brand

RNF, the Dutch sports and fashion holding, has purchased the global...

Textiles | On 20th Aug 2017

Intertextile Shanghai Home Textiles opens on August 23

Intertextile Shanghai Home Textiles, Asia’s leading platform to meet...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search