Delta Apparel continues year-over-year margin growth

By

Obi Anyanwu

Published
Nov 15, 2016

Delta Apparel on Monday released its preliminary financial results for the fourth quarter ended on October 1, 2016. Sales slipped to $114.4 million from $120.2 million in the prior year comparable period, but when adjusting for an additional week, net sales increased 2.5%.

 
The company reported that all of its businesses, with the exception of Junkfood, achieved sales growth with overall margins continuing to expand in both basics and branded segments.
 
Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer, commented, “We’ve had a very exciting, busy and productive quarter that, as you will see in our full results, gave us a solid finish to our fiscal year 2016. We saw double-digit sales growth in our Salt Life and Art Gun businesses, and mid-single digit sales growth in our Activewear business. Soffe experienced solid growth for the quarter as well.”

Delta also completed its manufacturing realignment during the quarter, and the company now expects its fourth quarter EPS to be in range of $0.38 and $0.40, compared to $0.53 in the prior year.
 
Humphreys added, “We fully implemented our manufacturing realignment during the quarter at a cost that was about $0.01 per share less than anticipated. We are very pleased that we were able to complete the sale of the real estate and equipment associated with our Maiden, North Carolina textile facility.  New equipment is installed and running at our Honduran textile facility and we are rapidly approaching our output goals. Our activities throughout fiscal 2016, and particularly in our fourth quarter, give us good momentum and a strong foundation for growth and profitability in fiscal 2017.”

Originally Delta Apparel's business was solely based on the sale of unembellished basic tees, but has meanwhile evolved into an apparel design, marketing, manufacturing and sourcing company. The Company offers a portfolio of lifestyle basics and branded activewear apparel and headwear that includes the Salt Life, Junkfood and Soffe brands.
 
Delta will report its full fourth quarter and full year results on November 29, 2016.