AUSTIN, Texas (AP) -- Golfsmith International Holdings Inc., which sells golf gear, on Wednesday cut its earnings guidance for 2007 due to slow sales and an increase in discounts in December.

The company said it now expects to report earnings per share between 13 cents and 16 cents for the year. It previously expected earnings between 31 cents and 35 cents per share.

Analysts polled by Thomson Financial expect profit of 30 cents per share.

Golfsmith cited lower-than-expected sales and more price discounting during December.

The company said its revenue for the year will be about $388 million. Analysts expect revenue of $394.2 million.

Golfsmith also said its same-store sales, or sales at stores open at least a year, would decline about 3.7 percent. Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly-opened ones.

Golfsmith said its earnings could be impacted by a non-cash impairment charge.

Shares fell 9 cents to $3.75 in electronic after-hours trading. During regular trading, shares rose 19 cents, or 5.2 percent, to close at $3.84.

The guidance cut came as the company announced its chief executive, James D. Thompson, has resigned. Chairman Martin Hanaka will take over as interim CEO until a permanent replacement is found. Hanaka will also stay on as chairman, and the company has hired Herbert Mines Associates to help search for a replacement.

Golfsmith did not disclose a reason for Thompson's departure in a news release.

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