Net sales of Sport-Haley’s fashion apparel fall by 3%

May 19, 2008 - United States Of America

Sport-Haley Inc reported unaudited earnings for its third fiscal quarter and nine months ended March 31, 2008.

Net sales of fashion apparel for the three months ended March 31, 2008, were $4,740,000, a decrease of $533,000, or 10%, from net fashion apparel sales of $5,273,000 for the comparable three-month period in the prior fiscal year.

Net sales of fashion apparel for the nine months ended March 31, 2008, were $12,532,000, a decrease of $419,000, or 3%, from net fashion apparel sales of $12,951,000 for the comparable nine-month period in the prior fiscal year.

Net sales of Top-Flite branded apparel of $11,000 and $158,000 for the three months and nine months ended March 31, 2008, respectively, were comprised of shipments to a retailer for a test in 50 of its stores and the disposition of inventories related to the cancellation by that retailer of a portion of its original purchase order.

Net sales of Top-Flite branded apparel of $1,185,000 for the nine months ended March 31, 2007, were comprised of sales to Wal-Mart of $1,000,000 and sales of $185,000 to other markets with regard to the disposition of inventories related to cancellations of purchase orders by Wal-Mart.

As a percentage of net sales, gross profit of our fashion apparel was 38% and 38%, versus 35% and 36%, for the three months and nine months ended March 31, 2008 and 2007, respectively. As a percentage of net sales, gross profit of our branded apparel was (55%) and 0%, versus 0% and 25%, for the three months and nine months ended March 31, 2008 and 2007, respectively.

Net loss for the three months ended March 31, 2008, was ($80,000), an improvement of $138,000, or 63%, as compared with the net loss of ($218,000) for the comparable three-month period in the prior fiscal year. Net loss for the nine months ended March 31, 2008, was ($683,000), an improvement of $153,000, or 18%, as compared with the net loss of ($836,000) for the comparable nine-month period in the prior fiscal year.

Basic and diluted earnings (loss) per common share were ($0.04) and ($0.09) for the three month periods ended March 31, 2008 and 2007, respectively. Basic and diluted earnings (loss) per common share were ($0.30) and ($0.31) for the nine month periods ended March 31, 2008 and 2007, respectively. All securities options were anti-dilutive and therefore excluded from the per share calculations with respect to periods in which net losses were incurred.

For further information regarding the third quarter of our 2008 fiscal year, refer to our Form 10-Q for the quarterly period ended March 31, 2008, which submitted to the Securities and Exchange Commission.