Amid sales growth, Golfsmith forges ahead with expansion
Monday, May 9, 2011
Continuing its aggressive growth strategy, Golfsmith is preparing to open its first location in the metro-Washington area in June.
The new store, which will be the retail chain’s 78th location in the country, is slated to open in Vienna, Va., near several prominent golf courses, including Congressional Country Club – site of this year’s U.S. Open.
The metro-Washington opening falls in line with Golfsmith’s plans to establish 14 new stores in the U.S. during the next two years.
The expansion comes at a time when Golfsmith reported first-quarter results, including a 20.5 percent gain in net revenues and a 13.4 percent increase in comparable-store sales.
For the three months ended April 2, the Austin, Texas-based retailer posted net revenues of $81.5 million compared with $67.6 million in the first quarter of fiscal 2010. The net loss for the first quarter was $3.1 million compared with a net loss of $4.8 million in the first quarter a year ago.
Regarding the company’s performance, Golfsmith chairman and CEO Martin Hanaka said: “We are pleased to see that the solid momentum in our business continued into the first quarter as our strategic initiatives began to take hold. As new product launches have stimulated demand, not only are we seeing strong sales across all of our channels, but we also continue to gain market share within the off-course golf specialty retail industry. These results validate our growth strategy and demonstrate our ability to create a unique retail in-store experience.”