Golfsmith International Holdings, Inc. (GOLF)

Golfsmith International Holdings operates as a specialty retailer of golf equipment, tennis products, apparels and accessories, with 65 stores being spread across US. It offers a line of branded clubs, balls, sweaters, vests, pants, footwear, repair kits, tennis strings, shorts and outerwear along with accessories, such as jewelry, watches and leather goods, along with other vast range of products. The Company also operates the Harvey Penick Golf Academy. For nine months ending September 2006, stores sales, direct to consumer and international distribution and others generated 74%, 24% and 2% of revenues.


As per National Golf Foundation, the total US addressable golf retail market is worth $ 6 billion, out of which apparels, footwear and gloves along with golf clubs comprise 57% of the market. The juniors are the fastest growing segment followed by women. The golf industry has realized significant growth, in both participation and popularity, with the number of rounds played in the US growing from 266 million in 1970 to 499.6 million rounds in 2005.


Recently Golfsmith.com has struck a deal, to be an official online golf and tennis pro shop of ESPN.com. With this GOLF becomes the first golf and tennis equipment, apparel and accessories store for ESPN.com. With the agreement, ESPN.com golf and tennis page will feature promotion and links to Golfsmith.com, whereby its 18 million visitors can shop more than 30,000 products and services from the world's top golf and tennis brands. For the next fiscal, the company plans to expand its store count by 14-16 stores and thereby targeting topline and bottom-line growth of over 20%. Operating in the niche market, its shares offer good opportunity for long-term investors.