For the fourth-quarter ended Dec. 30, sales for Austin, TX-based golf equipment cataloger/retailer Golfsmith increased 4.5%, to $75.0 million, up from $71.8 million for the period in 2005. Company officials said the increase was due to sales from 10 new stores opened in 2006 and a 1.2% increase in net revenue from its direct-to-consumer channel. Same-store sales fell 5.5% after a 13.5% increase a year ago, the company said, due to increased competition in certain markets and a decline in sales in the club-making industry. Golfsmith reported a net loss of $1.6 million for the quarter compared to a net loss of $2.3 million a year ago.
For fiscal year 2006, Golfsmith’s sales rose 10.5%, to $357.9 million up from $323.8 million in fiscal 2005. The increase was due to sales from the 10 new stores, a 2.7% increase in net revenue from its direct-to-consumer channel, and an increase in sales in existing stores, officials said. Same-store sales increased 2% for fiscal 2006. The company reported a net loss of $7.0 million compared to net income of $3.0 million in fiscal 2005.
CEO Jim Thompson said in a release: “In the fourth quarter and full year of fiscal 2006, we delivered on several of our strategic initiatives, such as growing the golf club category, expanding our presence in tennis, strengthening our apparel business, and distinguishing ourselves through our Guest First program. We executed our strategy in light of increasingly challenging market conditions.”