We’re actually disappointed as we missed our quarter but also encouraged by several transient factors underlying our results. First, our overall club business overcame enormous drive for unit sales last year, which was stimulated by free fairway, hybrids and similar promotions. Those promotions were not repeated by the OEM vendors and if you look at Golf Datatech, dollars were down 11%, down 8%, down 9%, each of the three months in the quarter on an industry basis.We were essentially flat. Strong iron sales and wedges also produced a good quarter although our quarter on the topline that was shorter by Golf. Clubmaking dropped 10% but the business really bottomed out and is essentially a shaft in great business today. The bottomline, the quality of our sales are better and not mostly driven by giveaways and we did not participate in the perpetual discount that we saw from some corners of the industry. Secondly, we continue to take share current Golf Datatech. While the way of gain has slowed a little bit, we’re still 4% to 4.5% better than the industry across the seven categories we track in the off course space. So bottomline there is, we really believe that our good market strategy is sound. Third, our geographic trend is stable except for California where 15 of our 77 stores compete. Rounds play were roughly flat year over year, are down measurably in California. So the bottomline is we’re a function of where we compete, it’s kind of interesting, New England was up 11% of rounds played, while we don’t have any stores there. So really function of our geography and that feels very good except for California, what’s happening across the chain. Next, our efforts to improve conversion are improving monthly and reached a year-to-date high in the month of June. Conversion in Q2 actually resulted every region of our company versus Q1. Next, our proprietary mix continues to improve and we are extending our internal goal to get the 15% instead of 12% over the next three years, up from 9% last year and we’re basically 1% better than LY.
And finally and very importantly, our direct business unit driven by the web has reversed it several quarter negative trend. This is the best demand creation we’ve had in about two years and that’s with 8.7% fewer pages and 5% last circulation. So we’re very encouraged there. Bottomline, our efforts to improve selection, our marketing service and technology are paying on.Now, before I turn it over to Sue, in June, we also hired a new Chief Merchandising Officer, Mr. Eli Getson. Eli joins our team after substantial experience at Polo, Perry Ellis, Bon-Ton, and most recently Cabela's. His success in expertise in a payroll, product development and similar were only enhanced achievement of our strategic direction. That job was vacant since January. So now we’ll discuss the numbers in detail after which I’ll discuss current trends to the market, July and our expectation going forward. Sue. Sue Gove Okay. Thanks Marty. Good morning everyone. For the second quarter, net revenues increased 2.8% to $118 million compared to $114.8 million in the second quarter of 2009. The sales growth was driven by the addition of four new stores into the store base, three during the second quarter of 2010. This was slightly offset by a 0.4% decline in comparable store revenue and a 0.3% decrease in our direct-to-consumer channel. As Marty mentioned, traffic trends were challenging particularly on the west coast but we were pleased to see the sequential improvement in our comp performance through the quarter, driven in large part by our increase in conversion rates due to the store operation or improvement. Read the rest of this transcript for free on seekingalpha.com