Delta Apparel reports rise in Q3 sales and earnings

Delta Apparel, Inc. for its third quarter and nine months ended June 29, 2019 reported net sales of 119.3 million dollars, up 6.3 percent and net sales of 323.8 million dollars, up 7 percent, respectively. In the third quarter, net sales in the Delta Group segment increased 5 percent and net sales in the Salt Life Group segment increased 18 percent from the prior year period. Third quarter net income reached 4.9 million dollars or 70 cents per diluted share, compared to 4.6 million dollars or 62 cents per diluted share in the prior year.

“Our team delivered a strong quarter with accelerated sales growth and profitability, and we are pleased with the performance across both our Delta Group and Salt Life Group segments. We continue to be encouraged by the apparel growth we are seeing with regional and national retailers across multiple geographies,” said Robert W. Humphreys, the company’s Chairman and Chief Executive Officer in a statement.

Highlights of Delta Apparel’s Q3 and nine month period

Gross profit during the quarter was 24.8 million dollars, an increase of 2.2 percent, while gross margin improved 240 basis points from the second quarter to 20.8 percent in the third quarter.

For the nine months, gross profit was 62.3 million dollars compared to 62.9 million dollars in the comparable period last year and gross margin was 19.2 percent compared to 20.8 percent.

Operating income for the quarter was 8.4 million dollars compared to 6.7 million dollars in the prior year third quarter. Operating income for the nine months was 11.3 million dollars compared to 14 million dollars in the comparable period last year, while net income for the period was 4.7 million dollars or 67 cents per diluted share, compared to the prior year period’s net loss of 1.8 million dollars or 25 cents per diluted share.