US lifestyle and activewear company Delta Apparel swung to a loss in the second quarter as its sales fell 16.2 percent.
The company made a net loss of 7 million dollars in the three months to April 1 from a profit of 10.1 million dollars a year earlier.
That came as its Q2 sales fell to 110.3 million dollars from 131.7 million dollars, with a 16 percent increase in its Salt Life segment offset by a 20.8 percent decrease in its Delta Group segment.
“The apparel markets remain dynamic,” Delta Apparel chair and CEO Robert W. Humphreys said in a statement.
He continued: “As expected, our Delta Direct and Global Brands channels were impacted by the well-publicized high inventory levels and associated slower demand in the supply chains they serve, while our Retail Direct channel saw double-digit sales growth in the quarter.”
Looking ahead, Humphreys said: “We remain keenly focused on managing our working capital, reducing inventory and debt levels, and leveraging the many opportunities across our business to provide higher-margin and quicker-turn ‘consumer ready’ products.
“Executing on these initiatives and working through the remainder of last year’s high-price cotton inventory sets the stage for improved operating results as we move through the second half of our fiscal year and positions us to capitalize on accelerations in demand.”