Ashworth, Inc. (NASDAQ:ASHW), a leading designer of on-course golf apparel and golf-inspired lifestyle sportswear, has announced unaudited financial results for its second quarter ended 30th April.
Allan H. Fletcher, chief executive officer of Ashworth, said, “We are pleased to report a profit for the second quarter. Throughout the second quarter, we continued to implement the strategic initiatives the management team believes will eventually produce the desired results.
“Although we’ve seen some signs of improvement in our core golf distribution channel, we still believe the turnaround will take more time, sharp focus and strong execution. Our management team is committed to doing the things we believe will, in time, position the company for sustainable and profitable growth.
“During the past few months we have faced difficult retail markets as well as a deteriorating economy, but we have taken steps designed to improve the company’s operational efficiency and inventory productivity over time and we are optimistic about the future of Ashworth.”
Total revenues in the domestic golf channel in the second quarter increased 2.3% to $22.3 million from $21.8 million for same period last year. This is the third consecutive quarter in which revenues in the golf channel have increased.
The increase in the second quarter was primarily driven by higher revenues from on-course golf retailers, partially off-set by lower revenues from off-course and off-price golf retailers over the comparable prior year quarter.
The company continues to experience competitive pressure and the effects of market consolidation in off-course specialty golf retail. As part of the company’s effort to restore sales growth, management is implementing new sales management processes in both the on-course and off-course channels of distribution.
Revenues from the company-owned stores were $2.2 million for the second quarter of fiscal 2008, a decrease of 14.2% from the second quarter of fiscal 2007. The decrease was largely due to the difficult retail environment.
Ashworth, Inc. www.ashworthinc.com