Golfsmith International Holdings, Inc. said revenues in its fourth quarter ended Jan 1 increased 14.2% to $72.9 million as compared to $63.9
million in the fourth quarter of 2009. Comparable store sales increased
6.4% while sales from the company's direct-to-consumer-channel increased
30.6%.

The pre-tax loss is expected to be in the range of $5.3 million to $5.6 million as compared to a pre-tax loss of $6.6 million in the fourth quarter of last year. Preliminary results for 2010 include $1.1 million in store closing, lease termination and asset impairment charges. Excluding these charges, pretax loss is expected to be between $4.2 million and $4.5 million.

The company ended the fourth quarter with $40.4 million of outstanding borrowings under its credit facility with borrowing availability of $18.2 million and cash on hand of $0.2 million. This compares to $36.0 million of outstanding borrowings under its credit facility with borrowing availability of $16.1 million and cash on hand of $0.7 million at January 2, 2010.
   
As of January 1, 2011, total inventory was $78.9 million as compared to $78.0 million at January 2, 2010. Comparable average store inventory declined approximately 5.1%.

For the Fiscal Year 2010:

    * Net revenues totaled $351.9 million as compared to $338.0 million in fiscal 2009; comparable store sales increased 0.3% and sales from the company's direct-to-consumer channel increased 4.1%.
    * Pre-tax loss is expected to be in the range of $5.1 million to $5.4 million as compared to a pre-tax loss of $3.4 million in fiscal 2010. Preliminary results for 2010 include $2.7 million in store closing, lease termination and asset impairment charges. Fiscal 2009 included $0.9 million in one-time charges.

Initiatives for Fiscal 2011:

The company also announced its plans to institute six key initiatives in 2011 aimed at driving sales and earnings growth which include: aggressively building its successful web business; expanding a proven, powerful new store model, driving optimal 4-wall results by store segment; shifting merchandise assortments to more apparel and footwear; expanding proprietary brands; and delivering operational excellence.

These initiatives will be elaborated upon during the company's presentation at the 13th Annual ICR XChange Conference held at the St. Regis Monarch Beach Resort & Spa in Dana Point, California Wednesday, January 12, 2011 at 2:55 pm Pacific Standard Time.

Martin Hanaka, chairman and chief executive officer, commented, “We are very pleased with our sales results for the fourth quarter. Our strong performance reflects our successful execution on several key initiatives that we outlined in the beginning of 2010 including improving productivity in our retail stores, successfully opening four new stores and refining our internet business. We look forward to building upon this success with our new initiatives in fiscal 2011.”

Golfsmith will report its fourth quarter and fiscal year 2010 financial results on Feb. 24.