Delta Apparel, Inc., for its fourth quarter and full year ended September 28, 2019 reported net sales of 108 million dollars, up 16.2 percent and 431.7 million dollars, up 9.2 percent, respectively. Fourth quarter net sales in the Delta Group segment increased 9.3 percent over the prior year and net sales in the Salt Life Group segment increased 8.1 percent. For the full year, net sales in the Delta Group segment increased 16.6 percent over the prior year period, while net sales in the Salt Life Group segment increased 12.5 percent.
Commenting on the trading update, Robert W. Humphreys, the company’s Chairman and Chief Executive Officer, said in a statement: “We are thrilled with our overall performance for the fourth quarter and full year. Both our Delta Group and Salt Life Group segments achieved double-digit sales growth for the quarter and drove results exceeding our expectations. We were also able to expand gross margins in the back half of the year, maintain our cost discipline, and finish the year with increasing profitability.”
Review of Delta Apparel’s Q4 and full year results
For the fourth quarter, gross profit was 22.9 million dollars, an increase of 19.5 percent and gross margin was 21.2 percent compared to 20.6 percent in the prior year fourth quarter, driven by year-over-year improvement in both the Delta Group and Salt Life Group segments. Operating income for the quarter was 4.8 million dollars compared to 3.5 million dollars in the prior year fourth quarter, with the increase driven primarily by an increase of 1.6 million dollars in the Delta Group segment. Net income was 3.5 million dollars or 50 cents per diluted share compared to 3.1 million dollars or 43 cents per diluted share, in the prior year period.
For the full year gross profit was 85.2 million dollars, up 3.8 percent, while gross margin was 19.7 percent compared to 20.7 percent in the prior year period. Net income was 8.2 million dollars or 1.17 dollars per diluted share, compared to prior year net income of 1.3 million dollars or 18 cents per diluted share. Adjusting for the 31 cents per diluted share expense impact of the bankruptcy litigation matter and the benefit of 10 cents per diluted share arising from the commercial litigation settlement, the company said, net income was 1.38 dollars per diluted share.