Sport-Haley, Inc. net sales for the fiscal second quarter declined 11% to $4.4 million from net sales of $5.0 million for the year-ago period. The decrease in net sales was primarily due to the previously reported discontinuance of Haley Reserve men's fashion golf apparel and a significant decrease in the sales of Sport Haley women's fashion apparel, offset a bit by a continuing increase in sales of Ben Hogan men's fashion apparel, which increased approximately 40% to $2.8 million for the quarter from net sales of approximately $2.0 million in Q2 last year. Sport-Haley believes the discontinuance of Haley Reserve men's fashion golf apparel contributed $200,000 to the decrease for the period. Net sales of Sport-Haley women's fashion apparel totaled approximately $1.4 million for the quarter, a decrease of 44% from last year.
Despite the sales decline, SPOR posted net income of $99,000 for Q2, compared with a net loss of $2.0 million in the year-ago period, thanks to a correction relating to the company's accounting for bonuses paid to certain executive officers and a key employee in October 2005, which should have been recorded in the first quarter. The bonuses totaled $75,000 in cash plus a vehicle valued at approximately $14,000. The correction will cause an increase in the net loss for the first quarter by approximately 24% and helped push the company into the black for the second quarter.
