Golf Galaxy sees 40.9% sales jump in Q1

20 Jun '06

3 min read

Leading golf specialty retailer Golf Galaxy Inc has announced its financial results for the first quarter ended May 27th 2006.

The net sales for the first quarter of fiscal 2007 increased 40.9 percent to $82.5 million, compared with $58.6 million for the same period of the prior year. Comparable store sales increased 1.0 percent for the fiscal first quarter, compared to an increase of 10.5 percent for the first quarter of fiscal 2006.

The company reported net income for the first quarter of $2.6 million, or 22 cents per diluted share, compared to net income of $1.7 million, or 21 cents per diluted share, for the first quarter of fiscal 2006.

"Golf Galaxy achieved a 52 percent increase in net income quarter over quarter despite sales that were somewhat below our initial expectations," said Randy Zanatta, Golf Galaxy's President and CEO.

"We grew total sales by $24 million and posted our thirteenth consecutive quarter of comparable store sales increases, against a strong 10.5 percent comp in the first quarter last year. Additionally, we produced a solid year-over-year increase in our gross margin rate, largely due to the results from our strategic initiative to grow the services business -- our most profitable category," Zanatta said.

Golf Galaxy opened eleven new stores during its fiscal first quarter, including its first stores in the Las Vegas, Pittsburgh, Syracuse, Oklahoma City and the New York City metro markets. Currently, it operates 61 stores in 24 states.

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