With a fresh new executive team in place, Ashworth ended its fiscal year on an up-note as fourth quarter earnings, margins and net loss all improved over the year-ago period. However, these results were not enough to offset the decreases seen leading up to this quarter as the full fiscal year results were down throughout the income statement. New CEO Allan Fletcher and his team will definitely have their work cut out for 2008 and beyond.
Consolidated net revenues for the fourth quarter of fiscal 2007 increased 8.9% to $54.6 million from $50.2 million for the same period of the prior fiscal year with increases in every distribution channel except in the retail channel. For the year, however, revenues decreased in all distribution channels except in the company's outlet stores.
Fourth quarter net revenues from the company's core golf distribution channel, consisting of both on-course and off-course golf specialty retail, increased 40.6% to $19.0 million from $13.5 million for the same period last year due to an increased number of on-course accounts and a higher average order size. A 35.3% higher average order size in the off-course specialty retail channel more than offset a slight reduction in those doors.
For fiscal year 2007, revenues in the golf distribution channel were down 4.5% to $67.1 million from $70.3 million for the prior fiscal year. Management attributed the softness to consolidation within the off-course specialty retail channel, most likely meaning Dicks Sporting Goods and Golf Galaxy.
Net revenues from the company's corporate distribution channel increased 13.3% to $6.1 million in the fourth quarter from $5.4 million last year, boosted by increased promotions. For fiscal year 2007, revenues in the corporate distribution channel were down 4.6% to $24.6 million from $25.8 million for the prior year.
Net revenues from the company's retail distribution channel decreased to $3.4 million in the fourth quarter from $4.1 million in the prior year. For fiscal 2007, revenues in the retail distribution channel decreased 28.4% to $16.3 million from $22.7 million for the prior fiscal year. Management noted on the conference call that a decision by the companys previous management' team to reduce the presence of its Ashworth brand in this distribution channel was the main reason for the diminished sales.
Net revenues for Gekko increased 6.1% to $12.4 million for the fourth quarter from $11.7 million for the year-ago quarter. The increase was primarily driven by improved penetration of Ashworth apparel in the collegiate bookstore channel; a change in the timing of the tour championship, which was played in September of 2007 versus November in 2006; and an increase in sales of Kudzu products in the NASCAR racing distribution channel. These strong points were partially offset by decreased sales in the outdoor distribution channel.
For fiscal 2007, revenues Gekko revenues increased 8.2% to $45.2 million from $41.8 million in the prior year.
Net sales from the company-owned outlet stores increased 9.8% to $3.1 million for the fourth quarter from $2.8 million last year, primarily due to increased promotional activity focused on clearing excess prior-season inventory. For fiscal year 2007, revenues from the company-owned outlet stores were up 10.8% to $11.7 million from $10.5 million for fiscal 2006.
Comp store sales increased 9.8% for the fourth quarter, but were down 1.6% for the full year. New stores added during the second half of fiscal 2006 contributed $2.7 million in revenue for the full year.
Net revenues for Ashworth UK Limited increased 5.7% to $7.8 million for the fourth quarter from $7.4 million last year as the favorable effect of exchange rate fluctuations were partially offset by the lack of Rider Cup sales in fiscal 2007. For the full fiscal year, Ashworth UK revenues decreased 2.7% to $27.3 million from $28 million for the previous year.
Net revenues for the other international segment increased 14.8% to $2.1 million for the fourth quarter from $1.8 million for the same period in the prior fiscal year. The increase was primarily due to the addition of two new distributors in Guam and Saipan. Net revenues for the other international segment decreased $400,000 to $10.1 million for the fiscal year compared to $10.5 million for the prior fiscal year. Management attributed the decrease for the full fiscal year 2007 primarily to lower sales in Canada.
The company's consolidated gross margins improved 410 basis points to 36.7% for Q4 from 32.6% last year. The company reported a consolidated net loss of $3.5 million for the quarter or 24 cents per share compared to a net loss of $4.4 million or 30 cents per basic and diluted share for the same quarter of the prior year.
