Delta Apparel Inc. reported unaudited consolidate earnings results for the second quarter and six months ended December 31, 2011. For the quarter, the company has posted net sales of $105,486,000 against $104,722,000 a year ago. Operating loss was $19,989,000 against operating income of $2,625,000 a year ago. Net loss was $13,592,000 or $1.61 diluted per share against net income of $1,416,000 or $0.16 diluted per share a year ago. The net loss was due primarily to the inventory markdown in the basics segment and lower than anticipated demand from retailers stemming from price increases on branded products necessitated by higher cotton costs. Capital spending during the quarter was $1,700,000 For the six months, the company has posted net sales of $229,009,000 against $212,639,000 a year ago. Operating loss was $13,289,000 against operating income of $5,583,000 a year ago. Net loss was $9,178,000 or $1.09 diluted per share against net income of $3,066,000 or $0.35 diluted per share a year ago. Due to the effect of the inventory markdown and selling price discounts on the second quarter and first six months, the company has reduced its fiscal year 2012 outlook for sales and earnings. For the fiscal year ending June 30, 2012, the company anticipates net sales to be in the $480 to $500 million range and earnings to be in the range of $0.50 to $0.60 per diluted share. The company expects its effective tax rate in the third and fourth quarters to be approximately 24%.