Golfsmith International Holdings, Inc. faced a tough comparison after last year’s 6.2% comp-sales gain, but managed to beat previous estimates. Third quarter net revenues increased 9.9% to $94.0 million compared with $85.5 million for the third quarter of 2005. The increase was driven by the addition of seven retail stores over the past year and a 5.1% increase in net revenues from its direct-to-consumer channel to $20.7 million from $19.7 million last year. Comparable store sales increased 0.2% on top of a 6.2% improvement in the same period a year ago. On a conference call with analysts, management attributed the comp increase to “double-digit gains in clubs, apparel, accessories, and tennis.”

Net income was $3.4 million, or earnings per diluted share of 21 cents, compared with net income of $1.2 million, or earnings per diluted share of 12 cents last year. Net income for this quarter was buoyed by a $2.1 million decrease in interest expense year over year, without which income would have been relatively flat at $1.3 million.

The company expects revenues in the $73 million to $76 million range for the fourth quarter. However, comparable store sales will decrease between 4% and 8% after last year’s 13.5% comps jump. The diluted loss per share is expected to be between 11 cents and seven cents. For the fiscal year, the company expects net revenues to range from $356 million to $359 million and comparable store sales from 1.5% to 2.4%. Pro forma diluted earnings per share are expected to be between 60 cents and 66 cents compared with previous estimates of 58 cents to 64 cents.