Golfsmith reported revenues in the first quarter increased 20.5 percent to $81.5 million. Comparable store sales increased 13.4 percent, while sales from the company's direct-to-consumer-channel increased 20.7 percent. Its net loss was narrowed to $3.1 million, or 19 cents a share, from a loss of $4.8 million, or 30 cents, for the first quarter of fiscal 2010.

Operating loss totaled $3.3 million as compared to a loss of $5.3 million in the first quarter of last fiscal year.

The company ended the first quarter with $42.9 million of outstanding borrowings under its credit facility with borrowing availability of $34.7 million. This compares to $42.8 million of outstanding borrowings under its credit facility with borrowing availability of $24.5 million at April 3, 2010.
   
As of April 2, 2011, total inventory was $98.9 million as compared to $87.8 million at April 3, 2010. Comparable average store inventory increased approximately 4.2%.

Martin Hanaka, chairman and chief executive officer of Golfsmith, commented, “We are pleased to see that the solid momentum in our business continued into the first quarter as our strategic initiatives began to take hold. As new product launches have stimulated demand, not only are we seeing strong sales across all of our channels, but we also continue to gain market share within the off-course golf specialty retail industry. These results validate our growth strategy and demonstrate our ability to create a unique retail in-store experience. In fact, our play better guarantee continues to deliver double digit custom club sales increases. We continue to focus on our key initiatives that we believe will set the stage for long term sales and profitability growth.”

Golfsmith International Holdings, Inc.
Consolidated Statements of Operations




Three Months Ended

April 2, April 3,

2011 2010

(unaudited)







Net revenues

$ 81,515,037

$ 67,648,539

Cost of products sold

54,097,281

44,884,055

Gross profit

27,417,756

22,764,484




Selling, general and administrative

30,451,510

27,852,926

Store pre-opening expenses

307,471

249,738

Total operating expenses

30,758,981

28,102,664




Operating loss

(3,341,225)

(5,338,180)




Interest expense

444,968

169,285

Other income (expense), net

43,265

28,194

Loss before income taxes

(3,742,928)

(5,479,271)




Income tax benefit

629,762

650,289




Net loss

$ (3,113,166)

$ (4,828,982)




Net loss per common share:



Basic

$ (0.19)

$ (0.30)

Diluted

$ (0.19)

$ (0.30)




Weighted average number of common shares outstanding:



Basic

16,261,033

16,092,183

Diluted

16,261,033

16,092,183