True Temper Sports, Inc. saw net sales for the second quarter decrease 5.8% to $30.7 million from $32.6 million last year. Sales of Golf Shafts decreased 7.5% to $28.5 million from $30.8 million last year. Sales of Performance Sports products increased 22.8% to $2.2 million, while International sales increased 11.7% to $10.1 million.
Gross margin decreased 530 basis points to 35.4% of net sales from 40.7% last year. The GM decrease, paired with an SG&A expense increase to drag down the bottom line to a net loss of $1.7 million for the second quarter. During last years period, the company posted a net income of $0.6 million.
Looking ahead, management is expecting revenues for the back half to show “some improvement,” with gross profit margins anticipated to be flat to slightly improved from the first half results.
