Golfing apparel maker Ashworth Inc has swung to a second quarter loss, blaming lower domestic sales and a $2.9m tax charge.

Net loss for the three months to 30 April was $2.5m, or $0.17 per share, compared to a net income of $4.7m, or $0.32 per share, for the same quarter of the prior year.

Net revenue for the Carlsbad, California-based company fell 9.3% to $59.9m from $66.0m in the same period last year.

Sales in the domestic segment, which includes Gekko Brands, dropped 10.7% to $47.2m from $52.8m. Total revenues in the domestic golf channel in the second quarter fell 21.9% to $21.8m, corporate sales were down 10.2% to $6.6m, and retail revenues slipped 8.5% to $6.4m.

International sales, including Ashworth UK, were down 3.7% to $12.7m from $13.2m.

Underutilisation of the company's embroidery capacity resulting from lower golf sales contributed to a 650 point drop in gross margin to 38.8%.

Last month Ashworth announced the return of Eddie Fadel as president, and the loss of 16 jobs as part of its ongoing cost reduction initiatives.