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Delta Apparel net sales increase 19 percent in Q1

By Prachi Singh

6 Feb 2018

Business

Net sales for the fiscal year 2018 first quarter at Delta Apparel, Inc. were 90.3 million dollars, an increase of 14.4 million dollars or 19 percent, from prior year first quarter sales of 75.9 million dollars excluding the 9.4 million dollars of sales from the company’s since-divested Junkfood business. Net sales increased by 5 million dollars or 5.9 percent from the 85.3 million dollars reported for the prior year first quarter that includes sales from Junkfood business. The company said that each of the its business units achieved double-digit sales growth over the prior year period, led by increases of 28 percent and 26 percent at Soffe and Art Gun, respectively, and 20 percent at Activewear.

“With double-digit growth across the board and improved operating earnings, we are pleased with our results in what is usually our most challenging seasonal quarter,” said Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer in a statement.

Highlights of Delta Apparel’s first quarter

Gross margins for the quarter in the branded segment expanded to 37.2 percent from 31.1 percent in the prior year period. This increase, the company said, was offset by a decline in basics segment gross margins due to higher raw material costs, resulting in overall gross margins of 18.1 percent compared to 20.6 percent in the prior year period. Adjusting for the discrete impact of tax reform, the company achieved net income of 0.08 dollar per diluted share compared to a loss of 0.08 dollar per diluted share in the prior year period.

Net sales in the basics segment were 73.2 million dollars, up 20 percent from 60.8 million dollars in the fiscal year 2017 first quarter. Activewear sales grew 20 percent over the prior year quarter, with increases at both Catalog and FunTees. Higher-margin products, particularly those within the Delta Platinum line, continued to gain acceptance in the market and sales increased 73 percent year-over-year. Art Gun saw a double-digit increase in units driving 26 percent year-over-year sales growth and record sales for the quarter.

Net sales in the branded segment were 17.2 million dollars for the quarter, up 14 percent year-over-year. Soffe sales for the quarter increased 28 percent over the prior year period. Salt Life sales increased 12.4 percent. Salt Life’s ecommerce sales remained on their double-digit growth path during the quarter and its new retail store in Daytona Beach, Florida, continued to perform well.

“While we expect the apparel markets to generally remain challenging, particularly for traditional retailers, we are excited about what we are seeing in our businesses and anticipate another year of growth and profitability for Delta Apparel,” added Humphreys.

Picture:Facebook/Soffe Active

Delta Apparel
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