Golfsmith announces preliminary unaudited fiscal 2007 results

10 Jan '08

3 min read

Golfsmith International Holding Inc announced preliminary unaudited results for the period ended December 29, 2007. The company also announced that it will be presenting at the 10th Annual ICR XChange Conference on Wednesday, January 16, 2008 at 2:15 pm Pacific Standard Time.

Preliminary Unaudited Results:
The company expects to report diluted earnings per share in the range of $0.13 to $0.16 for the year. This compares with its previously disclosed outlook of diluted earnings per share of $0.31 to $0.35.

Lower than expected sales coupled with increased price discounting during December impacted gross margins and the company's earnings.

Additionally, for fiscal 2007, the company expects to report revenues of approximately $388 million. Comparable store sales for the year declined approximately 3.7%.

In view of the decline in the price of the company's stock, the company is currently reviewing the value of its goodwill as of December 29, 2007 for impairment pursuant to the requirements of SFAS No. 142, Goodwill and Other Intangible Assets.

If the company determines that it is required to take an impairment charge to goodwill based on its current market capitalization and other relevant factors, the company's preliminary earnings per share set forth above would be further impacted by a non-cash charge.

The full impact, if any, will be disclosed in the company's regular earnings release and reflected in its financial statements filed with its Form 10-K.

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