Management for the Austin-TX based golf retailer said the company’s retail and direct businesses were “comtinu[ing] to gain momentum” as a result of certain strategic initiatives, adding that Golfsmith “continues to achieve significant market share gains during a difficult environment…”

Consolidated revenues for the quarter surged 14.2% to $72.9 million from $63.9 million in the year-ago period as same-store sales improved by 6.4% on enhancements made to the merchandise assortment and the company’s “continued focus on improving (its) selling culture.” Store traffic dipped 1% for the quarter, but management noted that the company’s average order value and conversion rate jumped double-digits, offsetting traffic declines.

Golfsmith’s Direct business, including catalog sales, was up 30.6% for the quarter on the aforementioned growth initiatives and a 40% growth spike from the company’s online business.

By product segment, management said the golf clubs business was the strongest while apparel and consumables were each up as well. “We are very pleased with the overall balance we saw out of the merchandise categories,” said Chairman and CEO Marty Hanaka.

The company’s net loss for the quarter narrowed to $5.7 million, or 35 cents per share, from a loss of $6.3 million, or 39 cents per share, in the prior-year period. Excluding one-time charges related to lease termination, store closings and asset impairment charges, the net loss was $4.6 million, or 28 cents per share.

 

Gross margins for the quarter were 32.1% of sales, down 180 basis points from the year ago period.

Regarding outlook, management said only that it hopes to grow average order value by over $2 by the end of the year along with focusing on increasing the conversion rate by one percentage point. Golfsmith also has plans to open four news stores during 2011.