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Sport Haley posts Q4 results, plans to focus on fashion apparel BU
14 Oct '06
3 min read
Sport-Haley Inc announced results of operations for the fourth quarter of its 2006 fiscal year. The Company reported net income of $204,000 for the fourth quarter of its fiscal year ended June 30, 2006, or $0.08 per share, as compared with net income of $587,000, or $0.23 per share, in the fourth quarter of the previous fiscal year.
For the quarter ended June 30, 2006, net sales increased by 12%, or $850,000, to $7,866,000 from $7,016,000 in the same period in the prior fiscal year. Gross profit decreased by 10%, or $259,000, to $2,233,000 from $2,492,000, and other operating costs increased approximately 19%, or $382,000, from $1,973,000 in the comparable prior year period to $2,355,000.
The comparative increase in net sales, decrease in gross profit and increase in other operating costs generally relate to the consolidation of the operations of Reserve Apparel Group with the operations of Sport Haley in our 2006 year. As previously reported, Reserve Apparel was formed in November 2005 in order that we may introduce Top-Flite branded apparel in Wal-Mart stores.
The numerous problems we encountered during the introduction of Top-Flite branded apparel within Wal-Mart stores, including poor performance of third party suppliers, extraordinary shipping charges and markdown money due to Wal-Mart as a result of the delivery delays and poor sell-through, caused Reserve Apparel to perform at a level significantly below our expectations.
Commenting on the results of operations, Mr. Jewell continued, "Nevertheless, we're encouraged with the results of our fourth quarter. Our fashion apparel segment produced income from operations of $245,000 for our fourth quarter in fiscal 2006.
For the quarter ended June 30, 2006, net sales increased by 12%, or $850,000, to $7,866,000 from $7,016,000 in the same period in the prior fiscal year. Gross profit decreased by 10%, or $259,000, to $2,233,000 from $2,492,000, and other operating costs increased approximately 19%, or $382,000, from $1,973,000 in the comparable prior year period to $2,355,000.
The comparative increase in net sales, decrease in gross profit and increase in other operating costs generally relate to the consolidation of the operations of Reserve Apparel Group with the operations of Sport Haley in our 2006 year. As previously reported, Reserve Apparel was formed in November 2005 in order that we may introduce Top-Flite branded apparel in Wal-Mart stores.
The numerous problems we encountered during the introduction of Top-Flite branded apparel within Wal-Mart stores, including poor performance of third party suppliers, extraordinary shipping charges and markdown money due to Wal-Mart as a result of the delivery delays and poor sell-through, caused Reserve Apparel to perform at a level significantly below our expectations.
Commenting on the results of operations, Mr. Jewell continued, "Nevertheless, we're encouraged with the results of our fourth quarter. Our fashion apparel segment produced income from operations of $245,000 for our fourth quarter in fiscal 2006.
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