Golfsmith International forecasts 2008 sales growth

AUSTIN, Texas—Golfsmith International Holdings Inc., which sells golf gear and operates a golf school, on Wednesday forecast its full-year sales would increase, but predicted its same-store sales would decline.

For fiscal 2008, it projected its overall sales would be "slightly positive," while its same-store sales would be "slightly negative," and its direct sales would be down.

Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.

In 2007, the company booked sales of $388.2 million. Analysts polled by Thomson Financial expect annual sales of $394.4 million.

The company also said its full-year earnings growth would be driven by cost cutting measures.

Shares lost 4 cents to $2.56 in aftermarket trading, after ending the regular session up 27 cents at $2.60.

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