Direct Sales Dip for Golfsmith

For the fourth-quarter ended Dec. 29, sales for Austin, TX-based golf equipment cataloger/retailer Golfsmith increased 5.3%, to $79.0 million, up from $75.0 million for the same period in 2006. Direct-to-consumer sales sank 6.7% while same-store sales dipped 5.5%.

Company officials said same-store sales fell due to increased competition in certain markets and a decline in sales in the club-making industry. Golfsmith reported a net loss of $46.7 million, including $43.0 million in impairment charges, compared to a net loss of $1.6 million for the same quarter last year.

For fiscal 2007, Golfsmith’s sales rose 8.5%, to $388.2 million up from $357.9 million in fiscal 2006. Direct-to-consumer sales slipped 6.2% while same-store sales fell 3.7%. The company reported a net loss for fiscal 2007 of $40.8 million, compared to a net loss of $8.1 million in fiscal 2006. Excluding the impairment charges, net income was $2.2 million in fiscal 2007.