Golfsmith saw new stores add a cushion to the top line that more than offset a steep decline in comparable store sales, but the costs of those stores, as well as of replacing a CEO, caused a surge in expenses that ultimately expanded the company’s quarterly loss. On a conference call with analysts, GOLF management disclosed that one way the company sought to control costs was through reduced headcount, with Q108 seeing a 7% decrease in the level of corporate personnel compared to the year-ago period.

Comparable store revenue decreased 8.4% to $51.1 million from $55.7 million last year, while revenue from the 13 stores not in the comp base jumped 426% to $9.9 million.  Management attributed part of the softness to a lack of new product introductions in the first quarter, compared to the year-ago period that saw the launch and immediate popularity of high-MOI, new geometry drivers. Drivers were described as the hardest hit category, with club making, hybrids and accessories also weak. Tennis, custom irons, proprietary clubs, soft lines, grips and technology were all said to have had a good quarter.


On the bright side, April was said to have seen an improving trend carrying into May on the strength of new introductions comping against a lack of launches last year.


Operating loss totaled $5.2 million in the first quarter compared with a $3.9 million loss for the first quarter of fiscal 2007.


For fiscal 2008, Golfsmith continues to expect overall sales growth to be slightly positive with slightly