Sport Haleys fiscal fourth quarter 2005 showed some drastic improvements over the preceding several quarters. Net sales increased 10.3% to $7.0 million compared to $6.4 million last year. Gross Margin increased by over ten full percentage points to 35.5% versus 25.0% last year. SG&A expenses as a percentage of sales dropped to 28.1% compared to 35.1% in the fourth quarter last year.
This all added up to bring Sport Haley out of the red for the quarter and net income jumped to $587,000 as compared with a loss of $1.7 million last year. On a per-share basis, this translates to 23 cents in diluted earnings per share versus a 55 cent loss per share in the fourth quarter of 2004.