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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report
(Date of Earliest Event Reported): Commission File Number:
February 19, 2009 0-51715

SPORT-HALEY, INC.
(Exact name of Registrant as specified in its charter)

Colorado 84-1111669
(State of incorporation) (I.R.S. Employer
Identification Number)

4600 E. 48th Avenue

Denver, Colorado 80216
303/320-8800
(Address of principal executive
offices and telephone number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition

On February 19, 2009, Sport-Haley, Inc. (the “Company” or “we”) issued a news release announcing unaudited financial results for
the quarter ended December 31, 2008. A copy of this press release is attached hereto as Exhibit 99.1 and the information contained therein is
incorporated herein by reference. The information in this Form 8-K (including the exhibit attached hereto) is being furnished under Item 2.02
and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
otherwise subject to the liability of such section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exh ibit No. De scription

99.1 News Release dated February 19, 2009.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.

SPORT-HALEY, INC.

Date: February 20, 2009 By: /s/ Patrick W. Hurley

Patrick W. Hurley, Chief Financial Officer

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE: February 19, 2009

CONTACT: Donald W. Jewell Patrick W. Hurley

Interim Chief Executive Officer Chief Financial Officer
(303) 320-8800 (303) 320-8800

SPORT-HALEY, INC. REPORTS SECOND QUARTER UNAUDITED RESULTS

Denver, Colorado – February 19, 2009 - - Sport-Haley, Inc. (NASDAQ – SPOR) (“Sport-Haley” or the “Company”) today reported unaudited
earnings for its second fiscal quarter and six months ended December 31, 2008.

Net sales of fashion apparel for the three months ended December 31, 2008, were $3,225,000, a decrease of $1,160,000, or 26%, from net fashion
apparel sales of $4,385,000 for the comparable three-month period in the prior fiscal year. Net sales of fashion apparel for the six months ended
December 31, 2008, were $6,049,000, a decrease of $1,744,000, or 22%, from net fashion apparel sales of $7,793,000 for the comparable six-month
period in the prior fiscal year.

Net sales of branded apparel were $26,000 and $146,000 for the three months and six months ended December 31, 2007, respectively, were
comprised of shipments to a retailer for a test in 50 of its stores. We discontinued marketing branded apparel bearing the Top-Flite® label in
November 2007, and in March 2008 our license agreement with Callaway was amended to remove the Top-Flite® brand, effective January 1,
2008.

As a percentage of net sales, gross profit of our fashion apparel was 32% and 30% for the three months and six months ended December 31,
2008, and was 41% and 38%, for the three months and six months ended December 31, 2007, as corrected, respectively. As a percentage of net
sales, gross profit of our branded apparel was 0% and 0% for the three months and six months ended December 31, 2008, and was (77%) and
3% for the three months and six months ended December 31, 2007, as corrected, respectively.

Net loss for the three months ended December 31, 2008, was ($142,000), a difference of ($119,000), or 517%, as compared with the net loss of
($23,000) for the three months ended December 31, 2007, as corrected. Net loss for the six months ended December 31, 2008, was ($1,182,000), a
difference of ($490,000), or 71%, as compared with the net loss of ($692,000) for the six months ended December 31, 2007, as corrected. Basic
and diluted losses per share were ($0.06) and ($0.01) for the three-month periods ended December 31, 2008 and 2007, as corrected, respectively.
Basic and diluted losses per share were ($0.52) and ($0.30) for the six-month periods ended December 31, 2008 and 2007, as corrected,
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.
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For further information regarding the second quarter of our 2008 fiscal year, refer to our Form 10-Q for the quarterly period ended December 31,
2008, which we plan to submit to the Securities and Exchange Commission today, February 19, 2009.

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SPORT-HALEY, INC. REPORTS SECOND QUARTER UNAUDITED RESULTS

Sport-Haley, Inc. 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 fashion golf apparel collections, known for their innovative designs, quality fabrics,
generous fits and classic styles, are primarily marketed in the premium and mid-priced markets, through a network of independent sales
representatives and distributors, to golf professional shops, country clubs, resorts and exclusive department stores within the United States.
Ben Hogan® fashion apparel is distributed pursuant to a licensing agreement with Callaway Golf Company. Reserve Apparel Group LLC, a
wholly owned subsidiary of Sport-Haley, Inc., formerly designed, purchased, contracted for the manufacture of, marketed and distributed
branded golf apparel and outerwear under the Top-Flite® label to mass retailers and other big-box type high sales volume retail stores. Top-
Flite® branded apparel was distributed until November 2007 pursuant to a licensing agreement with Callaway Golf Company, which was
amended to remove the Top-Flite® brand effective January 1, 2008.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: When used in this release, the words “may,” “will,”
“expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” “believe,” and similar expressions, variations or the negative of these
words, and any statement regarding possible or assumed future results of operations of our business, the markets for our products,
anticipated expenditures, regulatory developments or competition, or other statements regarding matters that are not historical facts, are
intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. The reader
should be aware that our actual results could differ materially from those contained in forward-looking statements. Our financial condition and
the results of our operations will depend on a number of factors, including, but not limited to, the following: successfully anticipating fashion
trends, designing favorably accepted fashion golf apparel, effectively advertising and communicating within the marketplace, and penetrating
our chosen distribution channels; competition within golf apparel markets; business conditions and growth in the fashion golf apparel market
and the general economy; our ability to successfully forecast sales and optimize inventory levels; our ability to successfully manage risks
associated with the trend of a high relative percentage of sales with respect to licensed apparel, such as the Ben Hogan® apparel collections;
loss of certain third party suppliers, and/or delays in receiving garments from third party suppliers caused by various factors, including lost or
reduced manufacturing capacity or significant suppliers, labor shortages, timely performance of third parties, transportation difficulties, and
others; significant delays in deliveries from third party suppliers; unsatisfactory recourse with regard to nonconforming goods received from
foreign suppliers; political and international trade relations; changes in international trade quota systems for apparel; significant reliance upon
several individual foreign suppliers; reliance upon a certain foreign person responsible for maintaining relationships with and monitoring the
performance of certain of our significant foreign suppliers; consumer spending on golf apparel; general global economic and political
conditions resulting from threats or acts of war or terrorism and responses thereto; access to capital; maintaining satisfactory relationships
with commercial banking institutions; establishing controls with regard to and maintaining the integrity of technology and information
systems; and, reliance upon executive officers and key employees. Additional information on these and other factors that could affect our
financial results is included in our Form 10-K for the year ended June 30, 2008. There may be other factors not mentioned above or included in
our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statement. The
reader should not place undue reliance on any forward-looking statement. Neither the Company nor any of its corporate officers or key
employees assumes any obligation to update any forward-looking statement as a result of new information, future event or development,
except as required by securities laws.

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SPORT-HALEY, INC.
Consolidated Unaudited Financial Information
(In thousands, except per share data)

Th re e Mon ths En de d S ix Mon ths En de d

De ce m be r 31, De ce m be r 31,
2008 2007 2008 2007
As As
C orre cte d C orre cte d
Statements of Income Data:

Net sales $ 3,225 $ 4,411 $ 6,049 $ 7,939

Gross profit 1,034 1,733 1,804 2,874

Total other operating costs 1,253 1,788 3,028 3,639

Loss from operations (219) (55) (1,224) (765)

Other income (expense), net 77 32 44 80

Net loss (142) (23) (1,182) (692)

Diluted loss per common share $ (0.06) $ (0.01) $ (0.52) $ (0.30)

Diluted weighted average shares outstanding 2,284,000 2,284,000 2,284,000 2,284,000

De ce m be r 31,
2008 2007
As
C orre cte d
Balance Sheets Data:

Current assets $ 10,656 $ 12,427

Total assets 10,806 12,726

Current liabilities - current 1,804 2,440

Long-term liabilities — —

Shareholders’ equity 9,002 10,286

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