Duck Head Apparel Company Inc (Amex: DHA), which was spun-off as a separate public reporting company on June 30, 2000 by Delta Woodside Industries has reported a net income for the first quarter ended September 30, 2000 of $545,000 compared to a net loss of $1,756,000 for the first quarter ended October 2, 1999. Operating income for the quarter ended September 30, 2000 was $731,000 as compared to $372,000 for the quarter ended October 2, 1999.

Net sales for the quarter ended September 30, 2000 were $13.1 million, an 18.6% decrease from the net sales of $16.1 million reported for the quarter ended October 2, 1999. Inventories at September 30, 2000 were reduced to $14.3 million from $17.8 million at July 1, 2000, a reduction of $3.5 million or 19.7%. Cash on hand at September 30, 2000 was $2.6 million up from $1.3 million at July 1, 2000.

"We are pleased to report continuing progress in returning the company to profitable operations," said Robert D. Rockey, chairman, president and CEO. "The results achieved in the first quarter build on the positive operating earnings of $419,000 achieved in the company's fourth quarter of fiscal year 2000. Due to a combination of improved operating earnings and the significantly lower debt service costs as a result of the contribution to equity by Delta Woodside of intercompany debt, the first quarter net income of $545,000 marks the first quarter of positive net income in the last thirteen quarters.

"The decline in sales versus the same quarter in fiscal year 2000 was primarily due to a substantial reduction in shipments with two major accounts as a result of ongoing negotiations to reduce or eliminate margin support agreements. The company is making substantial progress in gross profit improvement. Gross profit for the first quarter of fiscal year 2001 was 38.6% of net sales versus 30.7% for the first quarter of fiscal year 2000. We do not anticipate that the company's net sales decline will be reversed until mid-way through the second half of fiscal year 2001 when a substantial number of new doors receive their first shipment.

"Our continuing focus on inventory management has netted a $4.8 million reduction in inventories at the end of the first quarter of fiscal year 2001 as compared to the end of the first quarter of fiscal year 2000. This reduction has been achieved while maintaining sufficient core product inventory to successfully vendor manage and replenish core product for our major retail accounts."

Duck Head Apparel Company is headquartered in Winder, Georgia, and manufactures and sells men's and boys' apparel under the Duck Head brand. The company, which employs about 500 people, operates a distribution center in Winder, GA, a garment assembly plant in Costa Rica and 26 retail outlet stores primarily in the southeastern United States.

DUCK HEAD APPAREL COMPANY, INC.

Consolidated Statements of Operations
(Amounts in thousands)

For the Three Months Ended
September 30, October 2,
2000 1999
(unaudited) (unaudited)

Net sales $13,114 16,063

Cost of goods sold 8,052 11,126
Gross profit 5,062 4,937

Selling, general and administrative expenses 4,760 5,332
Other income 429 767
Operating income 731 372

Interest expense:

Interest expense, net 158 132
Intercompany interest expense --- 1,987
158 2,119

Income (loss) before income taxes 573 (1,747)
Income tax 28 9

Net income (loss) 545 (1,756)

Basic net earnings (loss) per share $0.23 (0.74)
Weighted average shares outstanding used
in basic per-share calculation 2,405 2,380

Diluted net earnings (loss) per share $0.22 (0.74)
Weighted average shares outstanding used in
diluted per-share calculation 2,519 2,380


DUCK HEAD APPAREL COMPANY, INC.

Condensed Consolidated Balance Sheets
(Amounts in thousands)

September 30, July 1,
Assets 2000 2000
(unaudited) (unaudited)
Current assets:
Cash $2,633 1,275
Accounts receivable, less allowances of
$996 in September 2000 and $1,219 in July 2000 4,973 3,191
Inventories 14,339 17,766
Prepaid expenses and other current assets 316 269
Total current assets 22,261 22,501

Property, plant and equipment, net 10,469 10,842
$32,730 33,343

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $1,216 1,621
Accrued expenses 3,913 4,161
Current portion of long-term debt 960 960
Revolver loan 149 ---
Income taxes payable 27 ---
Total current liabilities 6,265 6,742

Long-term debt 4,400 4,640
Other liabilities 349 798

Total liabilities 11,014 12,180

Stockholders' equity
Preferred stock,2,000,000 shares authorized;
none issued and outstanding --- ---
Common stock, $0.01 par value; 9,000,000
shares authorized; 2,407,213 issued and
outstanding at September 30, 2000; 24 24
2,399,863 issued and outstanding at July 1, 2000 24 24
Additional paid-in capital 21,147 21,139
Retained earnings 545 ---
Total stockholders' equity 21,716 21,163
$32,730 33,343