Golf Galaxy Revises Guidance for First Quarter and Fiscal 2007
22 Maio 2006 - 8:58AM
PR Newswire (US)
Company expects Q1 net sales of $82 million-$83 million; Narrows Q1
diluted EPS estimate to $0.19-$0.22 EDEN PRAIRIE, Minn., May 22
/PRNewswire-FirstCall/ -- Golf Galaxy, Inc. (NASDAQ:GGXY), a
leading golf specialty retailer, today issued a revised outlook for
the first quarter ending May 27, 2006, and the fiscal year ending
March 3, 2007. (LOGO:
http://www.newscom.com/cgi-bin/prnh/20050728/CGTH081LOGO ) Citing
softness in its direct businesses, primarily its catalog and
ecommerce operations, and a slower start to the spring season for
its retail stores, the company said it now anticipates net sales of
$82 million to $83 million for the first quarter of fiscal 2007.
Golf Galaxy had previously expected net sales of $84 million to $88
million for the quarter. The company also announced that it now
expects a comparable store sales gain of zero to two percent for
the fiscal first quarter, on top of a 10.5 percent comparable store
sales increase for the first quarter of the prior fiscal year. In
addition, the company narrowed its estimate for first quarter net
income to $2.2 million to $2.5 million (pending the final purchase
price allocation of The GolfWorks acquisition), or 19 cents to 22
cents per diluted share assuming 11.6 million weighted average
shares outstanding. The company's previous guidance for first
quarter net income was $2.0 million to $2.5 million, or 17 cents to
22 cents per diluted share. "Despite lower than anticipated sales,
we expect to achieve our estimated net income for the quarter
through expense management and a meaningful year-over-year
improvement in the gross profit rate at our retail stores," said
Randy Zanatta, Golf Galaxy's president and chief executive officer.
"The margin increase is being driven by strategic initiatives in
certain product categories, including services and accessories,
which has resulted in a favorable impact on the sales mix." Company
lowers full year outlook for net sales; maintains diluted EPS
guidance Based on its new outlook for the first quarter, the
company also revised its guidance for the fiscal year ending March
3, 2007, a 53-week period. For the full year, the company now
expects net sales of $300 million to $310 million, compared with
its prior estimate of $305 million to $315 million. The company's
new estimate for fiscal 2007 net sales assumes the opening of 14 to
16 new stores, of which 11 have been opened in the first quarter,
and a comparable store sales gain of 5 percent to 7 percent. Golf
Galaxy had previously announced an expected comparable store sales
gain of 6 percent to 8 percent for fiscal 2007. The company
reiterated its expectation for fiscal 2007 net income of $7.5
million to $8.1 million (pending the final purchase price
allocation of The GolfWorks acquisition), or 65 cents to 70 cents
per diluted share, assuming 11.6 million weighted average shares
outstanding. "Our new outlook for fiscal 2007 assumes that sales
volumes in all of our channels return to levels consistent with our
original expectations, expense leverage from cost containment and
gross margin expansion. We expect the current sales trend to
improve with our highest volume months ahead of us and easier
comparable store sales comparisons over the balance of the fiscal
year," Zanatta continued. The company plans to report its financial
results for the first quarter of fiscal 2007 on June 20, 2006, and
will provide additional commentary about its fiscal 2007 outlook at
that time. About Golf Galaxy Golf Galaxy, Inc., based in Eden
Prairie, Minn., owns and operates golf specialty retail stores. The
company currently operates 61 stores in 24 states and an ecommerce
website. The company's Everything for the Game(R) merchandising
strategy offers a comprehensive selection of competitively priced
brand name golf equipment, accessories, apparel, golf services, and
golf instruction by on-staff certified PGA professionals in a
unique interactive store environment. The GolfWorks, a leading
direct marketer of golf club components, clubmaking tools and
supplies, and technical information, is a wholly owned subsidiary
of Golf Galaxy that sells direct to consumers via a catalog and the
Internet at http://www.golfworks.com/ . For more information, visit
http://www.golfgalaxy.com/ . Cautionary Statement This news release
contains forward-looking statements about Golf Galaxy and readers
should not place undue reliance on any forward-looking statements
that are current only as of the date made. These forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from historical
results or those expressed in forward- looking statements. The
factors listed below, among others, could cause the company's
actual financial performance to differ materially from that
expressed in any forward-looking statement: A decline in the
popularity of golf or golf-related products and services;
limitations imposed by suppliers on the amount or variety of
products; failure by suppliers to develop and introduce new
products or if new products result in excessive close-outs of
existing inventories; seasonal fluctuation in demand for products;
weather conditions; ability to successfully implement growth plan;
competition in the golf and sporting goods industry; a decline in
discretionary spending; availability of adequate capital to fund
growth; loss of key management; and the company's ability to
successfully integrate acquired companies, including The GolfWorks.
Additional information concerning these and other factors that
could cause actual results to differ materially from those in the
forward- looking statements is included in the company's annual
report on Form 10-K filed with the Securities and Exchange
Commission on May 3, 2006. The foregoing list should not be
construed as exhaustive and Golf Galaxy disclaims any obligation
subsequently to revise or update any previously made forward-
looking statements, whether as a result of new information, future
events or otherwise. Contact: Investors and media: Susan Eich For
Golf Galaxy, Inc. 612-285-4188
http://www.newscom.com/cgi-bin/prnh/20050728/CGTH081LOGO
http://photoarchive.ap.org/ DATASOURCE: Golf Galaxy, Inc. CONTACT:
Susan Eich for Golf Galaxy, Inc., +1-612-285-4188 Web site:
http://www.golfgalaxy.com/ http://www.golfworks.com/
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