According to the National Golf Foundation (NGF), an independent industry research firm, the aggregate size of the U.S. golf market was estimated at $24.3 billion in 2002, which included spending on greens fees, equipment and accessories, and food and beverages. Golf clubs, balls, bags, gloves and footwear represented $4.7 billion of this total. It is estimated the total golf market is over $7.5 billion.

Over the past 30 years, the golf industry has experienced significant growth in participation and popularity. According to the NGF, the number of Americans who play golf has increased from 11.2 million in 1970 to 27.4 million in 2003. The industry has also experienced long-term increases in the number of rounds played per year, increasing from 266.0 million in 1970 to 495.0 million in 2003. According to the NGF, from 1994 to 2002, the off-course golf specialty store channel gained market share among avid golfers from the general sporting goods stores and mass merchants. In addition, according to the NGF's 2002 survey, the off-course golf specialty store channel is the number one golf retail channel for clubs and balls among avid golfers and customers spending at least $1,000 per year on golf-related purchases.

The retail channel for golf-related equipment, apparel and accessories is highly competitive and fragmented. According to the NGF, in 2003, there were 6.0 million avid golfers — golfers who played more than 25 rounds per year. Avid golfers represented 23% of all golfers and were responsible for 57% of all golf equipment purchases in the U.S. in 2002. In addition, according to the NGF, avid golfers purchased more clubs and balls in 2002 through the off-course specialty retail channel than through any other channel. The off-course specialty retail channel has also gained market share from the other channels.

The Company has developed two proprietary brands: Outward 9 for equipment and Rae's Creek for apparel. These proprietary brands are positioned at lower price points where the leading national brands do not have products.

Golf clubs is the Company’s largest category, representing approximately half of its net sales in fiscal 2005. The Company carries a broad and deep selection of woods, irons, wedges, putters and specialty clubs for golfers of every skill level. The Company also has extensive club selections for often underserved customer segments such as women, juniors and left-handed players. The Company also purchases pre-owned clubs in exchange for in-store credit and resell the high quality pre-owned clubs at all of its stores.

Bags, balls, gloves and accessories category includes bags, balls, carts, gloves, tees, training aids and hundreds of miscellaneous accessory items. The Company also offers golf themed art, home furnishings, books, videos, computer software, gifts, novelty items, sunglasses, watches, brief cases, pens and travel accessories.

The Company carries leading national brands in both apparel and footwear including FootJoy, NIKE Golf, Ashworth, adidas, Greg Norman, Tommy Hilfiger, Callaway, Sport Haley, Liz Golf, Dunning Golf, Ecco and Ben Hogan.

The Company features its merchandise in department store quality presentations, with mannequins and displays that feature the quality and selection of its offerings, organized by brand. The Company customizes its apparel and footwear assortments to the local market. The Company merchandises apparel in the center of the store to highlight this high margin category. The Company also offers non-golf casualwear.

Gross profit increased by $11.9 million, or 43.8%, to $39.1 million in fiscal year ended February 26, 2005 from $27.2 million in fiscal year ended February 28, 2004.

Store operating expenses increased by $7.7 million, or 46.1%, to $24.4 million in fiscal year ended February 26, 2005 from $16.7 million in fiscal year ended February 28, 2004.

Income from operations increased by $1.7 million, or 65.4%, to $4.3 million in fiscal year ended February 26, 2005 from $2.6 million in fiscal year ended February 28, 2004.

Net income was $7.5 million in fiscal year ended February 26, 2005, compared to $7.6 million in fiscal year ended February 28, 2004.