Golfsmith International Holdings, Inc. expects a net loss in the range of 31 cents to 32 cents per diluted share in the first quarter, widening from earlier guidance of a loss of 20 cents to 22 cents. The company attributed the net loss expansion to higher than anticipated SG&A expenses and gross margin pressure impacting the bottom line.
The company also expects to report revenues of approximately $77.6 million, which is in line with original guidance of $77 million to $79 million. Comparable store sales for the quarter declined 5.7%, reflecting slightly better results than the company's original guidance of negative 6% to negative 7%.
“We shifted more advertising expense into the first quarter than originally forecasted in an effort to provide necessary support to our National Trade-In Days event, one of our most important promotions of the year,” said Jim Thompson, chief executive officer and president of Golfsmith. “Additionally, the last two weeks of March continue to account for more than 20 percent of revenues in the seasonally light first quarter, and a higher mix of promotionally driven sales during this period added some pressure to our overall gross margin.
“We remain committed to our long-term growth strategy of driving revenues in our new stores and direct channel, as well as growing comparable store sales,” Thompson said.
