Golfsmith International Holdings CEO Discusses Q1 2011 Results - Earnings Call Transcript
So, overall, very pleased with the first quarter results and look forward to building on this momentum through the upcoming year and into Q2. And I can tell you, April is very consistent with our last two quarters combine, which are roughly 10% comp increases.
So the trends continue to be strong. We think we will continue to take market share. We see rounds played were up, real absolute numbers of rounds played in January and February, we are anxious to see March. But if that trend continues, the markets expanding and with the economy improving some what, we think that bodes well for the balance of 2011.
There is lot of new technology out there as I mentioned, there are some great club introductions starting with TaylorMade R11, Callaway’s RAZR product has obviously been very strong as well and as the Titleist D2 product. In fact clubs had its strongest quarter in a long time and outpaced the house. Customers are purchasing higher priced goods, 399 drivers, full price and that help raise our AOV by 6%.
We are dedicating more floor space to apparel. In fact we just completed a conversion of all of our apparel floors to a new fixed ring, which took us three years to do that’s going be behind us. And shop lines in total is almost 19% of our business, up from 15% a few years ago with a long-term goal to get to 25%. But those sales continue to be very strong and encouraging for us going forward. And proprietary brands exceeded 10% of our business, another key initiative.Sue is going to give you more detail on the numbers but three things that we think are really going to help us into the balance of the year; we continue to aggressively build the Web business, continue to invest in proprietary to differentiate us, shifting space and other resources to apparel and footwear. And if we can continue to calculate on this great club trend, which looks very, very strong right now and our people are very excited about what’s coming in May and June. We think 2011 will definitely be the year we return to profitability.Read the rest of this transcript for free on seekingalpha.com
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