Sport-Haley net sales fell 17.0% to $4.5 million in their fiscal third quarter from net sales of $5.4 million in Q3 last year. The decline was primarily due to the discontinuance of “Haley” men's fashion golf apparel from the spring 05 line along with a continuing decrease in the sales of Sport-Haley women's fashion apparel.
The Haley declines in sales were partially offset by Ben Hogan apparel sales, which increased by 43.7% to $2.3 million compared to $1.6 million last year. The Ben Hogan brand accounted for 52% of Sport-Haleys total sales compared to only 30% last year.
Gross margins were off 230 basis points to 36.6% of sales and SG&A expenses jumped 1,720 basis points to 63.4% of sales in the period. SPOR still managed to cut their net loss down by 15% in Q3 to $586,000, or a loss of 23 cents per diluted share, compared with a net loss of $693,000, or 28 cents per diluted share, in Q3 last year.
