DENVER, Colo. -- Golf clothier Sport-Haley, Inc. (NASDAQ: SPOR) had a net loss of $426,000 for the first fiscal quarter ended Sept. 30, or ($0.23) per share, company officials have announced.

That is smaller than the net loss of $1,276,000, or ($0.52) per share, in the comparable quarter of the previous fiscal year.

Net sales in the quarter decreased by 28 percent, or $1,559,000, to $4,011,000, from $5,570,000 in the same period in the prior fiscal year.

Gross profit decreased by 26 percent, or $465,000, to $1,305,000 from $1,770,000, while other operating costs decreased approximately 41 percent, or $1,261,000, from $3,057,000 in the comparable prior year period to $1,796,000.

"Our results for the first quarter are in line with our expectations," said Interim Chief Executive Officer Donald W. Jewell. The sales drop "primarily relates to our previous discontinuance of our Sport Haley men's fashion apparel collections, which accounted for slightly over $1 million of our net sales for the September 2004 fiscal quarter.

"We've worked diligently in the last twelve months to ensure the long-term financial health of the company, and we believe that we have taken the necessary steps to return the company to profitability in this fiscal year, including the joint venture we recently formed to introduce Top-Flite-branded apparel," he added.

"We've maintained on track with our objectives to reduce operating costs," he continued. "Our inventory position has remained in line with our expectations, and our reduced operating costs are indicative of the significant reductions that we implemented in the last year. While our plans include focusing our efforts to find more ways to continue to decrease our operating costs, we believe that the success we achieved during our first quarter certainly indicates that the changes we have implemented to date have improved our overall operations."

Sport-Haley designs, purchases, contracts for the manufacture of and markets women's and men's fashion golf apparel and outerwear under the Sport Haley and Ben Hogan labels. The company distributes Ben Hogan and Top-Flite apparel via a licensing agreement with Callaway Golf Co.