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 |