Golfsmith International Holdings, Inc. reported that it expects to
record diluted earnings per share in the range of 13 cents to 16 cents
for fiscal 2007, or well below previous estimates of 31 cents to 35
cents per diluted share.  The results are still a significant
improvement from the net loss of 10 cents per diluted share reported
for fiscal 2006. The company attributed its guidance miss to
lower-than-expected sales coupled with increased price discounting
during December that impacted gross margins and the company's earnings.

Additionally, for fiscal 2007, the company expects to report revenues
of approximately $388 million, an increase of 8.4% over the $357.9
million reported for fiscal 2006.  This result suggests that
fourth quarter revenues will amount to $78.8 million, increasing 5.1%
from fourth quarter 2006 revenues of $75.0 million. Comparable store
sales for the year declined approximately 3.7%.

Golfsmith also announced that its CEO, James D. Thompson has resigned
from his position to pursue other interests. The board of directors has
appointed current chairman Marty Hanaka as the company's interim CEO.

The company also announced that it expects to incur a one-time charge
of approximately $800,000 in the first quarter of fiscal 2008
associated with Mr. Thompson’s separation package.