The third quarter is Golf Galaxy's lowest volumeperiod due to the seasonality of the game. During thequarter, the golf specialty retailer saw its net salesincrease 56.7% to $31.8 million, compared with $20.3million for the same period of the prior year.Comparable store sales increased 6.7% for the quarteron top of a 9.9% increase for the third quarter lastyear.

The chain, which operates 49 stores in 23 states,reported a net loss for the third quarter of $1.6million, or 15 cents per diluted share, compared withits guidance for a net loss of $1.8 million to $2.2million. For the same period last year, Golf Galaxyreported net income of $3.4 million, or 43 cents perdiluted share. The earnings included a pre-tax gain of$8.4 million realized on the sale of its equityinvestment in Golf Town Canada Inc. stock. Withoutthat one-time gain, the chain's net loss would havebeen $1.7 million, or 16 cents per diluted share.

In addition to the unseasonably warm weather, GolfGalaxy COO Greg Maanum attributed the sales increasesto improved merchandising. He said during the chain'searnings conference call that the categories ofpre-owned clubs, women's golf and services were topperformers, achieving double-digit comp sales.