Sport-Haley, Inc. saw increased sales in its SPORT HALEY brand combine with Top-Flite sales that did not occur in the year-ago period to boost its overall fiscal second quarter net sales. The increased Q2 net sales, in turn, brought the company into the black for the quarter after a loss for the prior-year period.


Fiscal second quarter net sales of fashion apparel, for the period ended December 31, 2007, increased 4.7% to $4.4 million from $4.2 million for the comparable three-month period in the prior fiscal year.

 

The increases in sales of fashion apparel for the three and six-month periods were primarily comprised of increases in sales of SPORT HALEY fashion apparel that was slightly offset by decreases in sales of Ben Hogan. Net sales of SPORT HALEY apparel increased 15.9% to $2.2 million from net sales of $1.9 million for the same period last year. Ben Hogan net sales declined 4.1% to $2.1 million from $2.2 million for the year-ago quarter.


Net sales of Top-Flite branded apparel of $26,000 and $146,000 for the three months and six months periods, respectively, were comprised of shipments to a retailer for a test in 50 of its stores. There were no sales of Top-Flite apparel in the year-ago quarter and $1.2 million in sales for the year-ago first half, comprised of sales to Wal-Mart of $1.0 million and sales of $185,000 to other markets.


As a percentage of net sales, gross profit for fashion apparel was 41% for the quarter, up 300 basis points from 38% from last year.
Net income for fashion apparel was $43,000 compared to a loss of $221,000 in the year-ago quarter. However, the branded apparel business posted a loss of $51,000 for the quarter, which offset the fashion improvement.

 

Sport-Haley did record net income of $24,000 for the fiscal second quarter through a $32,000 boost on the other income line, switching from a net loss of $221,000 for the comparable three-month period in the prior fiscal year. The company recorded net earnings of a penny per diluted share for the quarter, up from a loss of 8 cents per share in the year-ago period.