Golfsmith International Holdings, Inc. has announced anticipated financial results for the fourth quarter and fiscal year 2009 ended Jan. 2, 2010 based upon preliminary figures.


Net revenues for the fourth quarter totaled $63.9 million as compared to $67.8 million in the fourth quarter of 2008. Comparable store sales increased 0.9% while sales from the company’s direct-to-consumer-channel decreased 21.2%. Total net revenues represent 13 weeks in 2009 as compared to 14 weeks in 2008. Comparable store sales are calculated on a 13-week basis for both quarters presented.


Pre-tax loss for the quarter is expected to be in the range of $6.2 million to $6.5 million as compared to a pre-tax loss of $7.1 million in the fourth quarter of last year.


The company ended the fourth quarter with $36.0 million of outstanding borrowings under its credit facility and cash on hand of $7.2 million. This compares to $51.7 million of outstanding borrowings under its credit facility and cash on hand of $2.7 million at Jan. 3, 2009.

As of Jan. 2, 2010, total inventory was $77.8 million as compared to $90.5 million at January 3, 2009, and average store inventory declined approximately 6.5%.

For the Fiscal Year 2009:


Net revenues for 2009 totaled $338.0 million as compared to $378.8 million in fiscal 2008; comparable store sales decreased 7.9% and sales from the company’s direct-to-consumer channel decreased 25.8%.


Pre-tax loss for the year is expected to be in the range of $3.0 million to $3.3 million as compared to a pre-tax loss of $0.4 million in fiscal 2008.

Initiatives for Fiscal 2010:


The company also announced its plans to institute five key initiatives in 2010 aimed at driving sales and earnings growth which include: improving the retail business with an increased emphasis on the company’s selling culture; the opening of four new stores; increasing gross margin; refining the direct-to-consumer business; and executing operational excellence. These initiatives will be elaborated upon during the Company’s presentation at the 12th Annual ICR XChange Conference on Wednesday, Jan. 13, 2010 in Dana Point, CA. A PowerPoint presentation detailing these objectives will also be available in the investor relations section of the Company’s website.


Martin Hanaka, chairman and CEO of Golfsmith commented, “We are encouraged by the improved selling momentum in November and December. In addition, we worked diligently throughout the year to institute disciplined inventory controls and cost reductions that have resulted in positive free cash flow and marked improvement in our balance sheet. We are proud of our accomplishments in 2009, which were especially significant in the face of the challenging economic environment. As we look ahead, we believe that the key initiatives we plan to put in place will position us to reinvigorate our sales, expand operating margin, and continue to generate positive free cash flow in 2010 and beyond.”