Tuesday, Golfsmith International Holdings Inc. (GOLF), a retailer of golf and tennis equipments, reported a sharp decline in third quarter earnings from a year ago. Both earnings and revenues for the quarter fell short of Street estimate.
The Austin, Texas-based Golfsmith's third quarter net income slipped to $1.1 million or $0.07 per share from $2.84 million or $0.17 per share last year. Excluding non-recurring litigation settlement charge, net income for the quarter would have been $1.5 million or $0.09 per share.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.14 per share. Analysts' estimates typically exclude special items.
Net revenue declined to $90.59 million from $101.7 million in the prior year quarter, and fell short of Street estimate of $92.75 million.
Golfsmith said net revenues reflect an 8.5% decrease in comparable store sales and a 27% decrease in net revenues from the direct-to-consumer channel, partially offset by revenues from non-comparable stores.
Commenting on the results, Martin Hanaka, chairman and chief executive officer, said, "Our third quarter results reflect continued sales challenges of discretionary products in the golf industry. While store traffic has begun to stabilize, consumers remain cautious about spending."
Year-to-date, the company recorded net income of $2.75 million or $0.17 per share, down from $5.97 million or $0.37 per share in the corresponding period last year. Revenues declined to $274.18 million from $310.93 million in the previous year.
GOLF is trading at $2.33, down $0.25 or 9.69%, on a volume of about nine thousand shares.
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