Golfsmith to Meet Sales Guidance, to Miss Net Income…
Golfsmith International Holdings, Inc. expects to meet its guidance for net sales for the first quarter and to beat comparable store sales guidance. Unfortunately, the company does not expect to meet previous net income guidance of 20 cents to 22 cents per diluted share, instead anticipating a net loss in the range of 31 cents to 32 cents per diluted share for the first quarter. The company attributed the net loss expansion to higher than anticipated SG&A expenses and gross margin pressure impacting the bottom line.
Back on the top line, the company expects to report revenues of approximately $77.6 million, which is in line with original guidance of $77 million to $79 million. Comparable store sales for the quarter declined 5.7%, reflecting slightly better results than the company's original guidance of negative 6% to negative 7%.
