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

Pic: Shutterstock

Textiles | On 20th Feb 2020

An Industry Goes Viral

When the novel coronavirus, now called COVID-19, was first detected...

Pic: Shutterstock

Textiles | On 20th Feb 2020

Rising global import of sacks and bags

Overall trade of sacks and bags (for packaging of goods) has been...

Pic: freemind-production / Shutterstock.com

Retail | On 20th Feb 2020

Authentic Brands announces acquisition of Forever 21

Authentic Brands Group (ABG), a global brand development, marketing,...

Interviews View All

Evelyne Cholet, UCMTF

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Riddhika Shah, SS Homme

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Paolo Toricella,

Paolo Toricella

Electronics for Imaging (EFI) is a global technology company, based in...

Nitesh Mittal,

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant & Nandita are known for being inspired by...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

Leave your Comments


February 2020

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


Advanced Search