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Ashworth plans to improve opts & cut operating costs
12 Mar '08
3 min read
Consolidated selling, general and administrative (“SG&A”) expenses increased 1.3% to $19.4 million for the first quarter of fiscal 2008 as compared to $19.1 million for the first quarter of fiscal 2007. As a percent of net revenues, SG&A expenses were 56.1% for the first quarter of fiscal 2008 as compared to 50.0% for the same period of the prior fiscal year.
The expense increase is largely due to increased consulting fees, primarily associated with product design and supplementing the Company's accounting function during the executive transition period, combined with the expense related to the employment and non-compete agreements entered into with the principals of Gekko on June 4, 2007. These increases were partially offset by a decrease in commission expense primarily as a result of the reduction in revenues.
Analysis of First Quarter Fiscal Year 2008 Revenues by Channel
The Company's first quarter fiscal 2008 revenues decreased in all distribution channels except for the Company's domestic golf and Collegiate/Racing distribution channels.
Golf:
Total revenues in the domestic golf channel in the first quarter 2008 increased 5.6% to $9.5 million as compared to the same period last year. Revenues from on-course golf retailers increased 8.9% or $578,000 over the prior year, but this increase was partially offset by a decrease of $76,000 in revenues from off-course golf retailers.
The Company continues to experience significant competitive pressure and market consolidation within the off-course channel of distribution. As part of the Company's effort to restore sales growth, management is implementing new sales management processes in both the on-course and off-course channels of distribution. The Company is also establishing a number of new programs with key off-course accounts.
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The expense increase is largely due to increased consulting fees, primarily associated with product design and supplementing the Company's accounting function during the executive transition period, combined with the expense related to the employment and non-compete agreements entered into with the principals of Gekko on June 4, 2007. These increases were partially offset by a decrease in commission expense primarily as a result of the reduction in revenues.
Analysis of First Quarter Fiscal Year 2008 Revenues by Channel
The Company's first quarter fiscal 2008 revenues decreased in all distribution channels except for the Company's domestic golf and Collegiate/Racing distribution channels.
Golf:
Total revenues in the domestic golf channel in the first quarter 2008 increased 5.6% to $9.5 million as compared to the same period last year. Revenues from on-course golf retailers increased 8.9% or $578,000 over the prior year, but this increase was partially offset by a decrease of $76,000 in revenues from off-course golf retailers.
The Company continues to experience significant competitive pressure and market consolidation within the off-course channel of distribution. As part of the Company's effort to restore sales growth, management is implementing new sales management processes in both the on-course and off-course channels of distribution. The Company is also establishing a number of new programs with key off-course accounts.
Click here to view more:
Ashworth Inc
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