Golf Galaxy reported that net sales for the fiscal first quarter ended May 28 increased 52.6% to $58.6 million from $38.4 million in the first quarter of fiscal 2005. Net sales from new stores opened in the current or prior fiscal year contributed $15.4 million worth of the sales gain, while comp store sales increased 10.5% for the quarter on top of a 7.5% comp sales gain in the year-ago period.
The increase in comparable store sales was primarily attributable to increased sales of clubs, which was driven by several new product introductions. Increased sales of golf balls resulting from increased promotional and merchandising focus on this product group also contributed to the comparable store sales gains.
GGXY opened 11 net new stores since the fiscal year-end for a total of 45 stores operating at the end of May.
Gross margin improved 100 basis points to 31.1% of sales, compared to 30.1% in the prior fiscal year's first quarter. SG&A increased 60 basis points to 12.5% of sales in Q1. Net income was $1.7 million in the first quarter of fiscal 2006, a 54.5% increase from net income of $1.1 million in the first quarter of fiscal 2005.
