The consolidation of the golf sector is far from over. The latest income statement of Golfsmith International shows that the U.S. company spent $1.3 million in the fourth quarter of 2011 exploring a strategic transaction and its possible sale, contributing to a net loss of $5.6 million for the period, compared with a loss of $5.7 million in the year-ago period.
The American golf retailer's revenues rose by 2.3 percent to $74.5 million in the three months, but comparable store sales declined by 4.7 percent and its e-commerce platform generated 3.5 percent lower revenues.
The 45-year-old company operates 80 golf stores in the U.S. Its subsidiary in the U.K, Golfsmith Europe, doesn't have any stores but has a significant wholesale business, representing several brands in the U.K. and other parts of Europe. As part of its international development, Golfsmith recently completed a partnership in Korea that could serve as a springboard to the Chinese market.
For the full 2011 financial year, the group reported a net profit of $0.9 million against a loss of $5.5 million in the previous year. Sales grew by 10.1 percent to $387.3 million, with comparable store sales up by 4.7 percent.
