Golf Galaxy does not currently have a presence in big golfing states such as Arizona, California and Florida, so a lot of expansion could take place in those locales, says Randy Zanatta, president and chief executive officer. "We have a lot of growth ahead," he says.

Golf Galaxy has been on pace to open about 16 stores a year, but could bump that number up to 20, Zanatta says. One reason the company has so much opportunity, he says, is because the golf-retailing sector is fragmented, with the largest player only accounting for 4% of sales.

Plus, the chain should benefit from an aging population. "We really feel that golf will grow by the impact of the aging Baby Boomers," Zanatta says.

One way the Eden Prairie, MI-based retailer has recently grown was through the acquisition of golf-supplies company GolfWorks last month for about $15 million. That deal will allow Golf Galaxy to attract even more consumers because it will be able to sell GolfWorks' private-label equipment at lower price points, as opposed to the name brands that the chain already sells, Zanatta says.

In Golf Galaxy's latest reported quarter, which ended Nov. 26, the company reported a net loss of $1.6 million. Sales were up 56.7%, to $31.8 million, and year-over-year same-store sales rose 6.7%.