Golfsmith International Holdings, Inc. reported sales dipped 1.7% in the first quarter to $67.6 million compared to net revenues of $68.8 million for the first quarter of fiscal 2009. Net revenues reflect a 1.0% decrease in comparable store sales and a 13.5% decrease in net revenues from the direct-to-consumer channel.

Operating loss totaled $5.3 million for the first quarter of fiscal 2010 compared to a loss of $5.4 million for the first quarter of fiscal 2009. In last year�€�s first quarter, the company recorded a $0.5 million non-recurring charge, or 3 cents per diluted share, related to severance associated with organizational changes.

Net loss for the first quarter of fiscal 2010 totaled $4.8 million, or a net loss per diluted share of 30 cents. This compares to a net loss of $5.1 million or a net loss per diluted share of 32 cents for the first quarter of
fiscal 2009.

As of April 3, 2010, the company had $42.8 million of outstanding borrowings under its credit facility and borrowing availability of $24.5 million. This compares to $45.2 million of outstanding borrowings under its credit facility, and $16.4 million of borrowing availability at April 4, 2009. Average store inventory declined 3.5% at April 3, 2010 as compared to April 4, 2009.

Martin Hanaka, chairman and CEO, commented, “The first quarter of 2010 was a challenging period in the golf industry. Cold and wet weather conditions contributed to a 12.4 percent decline in rounds played compared to last year, and this resulted in softer product demand than had been anticipated. However, we are encouraged by improved selling trends that we experienced in March and April in response to new product technology and successful marketing efforts. In addition, we believe that we are benefitting from the pent-up demand that we had been expecting to see this year.”
 
Hanaka continued, “We continue to maintain careful control over our inventory levels and align operational expenses with demand.”

Golfsmith has more 70 stores across the United States.