Golfsmith’s Net Revenue Up, Direct Sales Down

Golfsmith International Holdings (Nasdaq (GM): GOLF) reported a 9.5% rise in second-quarter net revenue to $125 million, up from $114.1 million, for the three months ended July 1. But the catalog/retailer said the increase was partially offset by a 4.8% decrease in net revenue from its direct channel, and a 4.7% decrease in comparable store sales.

The Austin, TX-based golf equipment company also reported net income of $6.8 million in the second quarter, or earnings per diluted share of 43 cents, based on 15.8 million fully diluted weighted average shares outstanding. This compares with a net loss of $7.9 million, or a loss per diluted share of 73 cents, in the same quarter of 2006.

“We drove revenues by opening eight stores that incorporate our core activity-based store format and by increasing sales in certain key categories, such as apparel, tennis and electronic accessories,” said Golfsmith president/ CEO Jim Thompson in a statement. “We closely managed our operations and remained flexible in the way we ran our business in this highly competitive and promotional environment.”