Golf Galaxy revises outlook for Q1 and fiscal 2007
22 May '06
3 min read
Based on its new outlook for the first quarter, the company also revised its guidance for the fiscal year ending March 3rd 2007, a 53-week period. For the full year, it now expects net sales of $300 million to $310 million, compared with its prior estimate of $305 million to $315 million.
The company's new estimate for fiscal 2007 net sales assumes the opening of 14 to 16 new stores, of which 11 have been opened in the first quarter, and a comparable store sales gain of 5 percent to 7 percent. It had previously announced an expected comparable store sales gain of 6 percent to 8 percent for fiscal 2007.
The company reiterated its expectation for fiscal 2007 net income of $7.5 million to $8.1 million (pending the final purchase price allocation of The GolfWorks acquisition), or 65 cents to 70 cents per diluted share, assuming 11.6 million weighted average shares outstanding.
"Our new outlook for fiscal 2007 assumes that sales volumes in all of our channels return to levels consistent with our original expectations, expense leverage from cost containment and gross margin expansion. We expect the current sales trend to improve with our highest volume months ahead of us and easier comparable store sales comparisons over the balance of the fiscal year," Zanatta continued.
The company plans to report its financial results for the first quarter of fiscal 2007 on June 20th 2006, and will provide additional commentary about its fiscal 2007 outlook at that time.
Golf Galaxy Inc, based in Eden Prairie, Minn., owns and operates golf specialty retail stores. It currently operates 61 stores in 24 states and an ecommerce website.
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