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

Courtesy: ASEAN

Apparel/Garments | On 16th Nov 2018

ASEAN RCEP pushed back to 2019 due to lack of consensus

The Association of Southeast Asian Nations (ASEAN) postponed...

Cotton sector to receive boost in Azerbaijan's Ujar region

Textiles | On 16th Nov 2018

Cotton sector to receive boost in Azerbaijan's Ujar region

Factories for cotton processing, production of cottonseed oil and...

Uzbekistan wants zero EU customs duty on textile products

Textiles | On 16th Nov 2018

Uzbekistan wants zero EU customs duty on textile products

Uzbekistan plans to seek zero customs duty from the European Union...

Interviews View All

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Spokesperson, Hugo Boss

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Mario Ploner,

Mario Ploner

<div>Italian company Tecnomeccanica Biellese specialises in planning and...

Carolin Russ,

Carolin Russ

Weko, Weitmann &amp; Konrad GmbH &amp; Co KG, based in south Germany, is...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions &amp; Vertriebs Gmbh, founded in 1978 and headquartered ...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

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


November 2018

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

news category


Related Categories:

Advanced Search