DULUTH, Ga- Delta Apparel, Inc. (NYSE American: DLA), an industry leader in activewear, lifestyle apparel and digital printing strategies on demand, announced today financial results for the second quarter of its fiscal year 2020. April 1, 2023.
Chairperson and chief executive officer Robert W. Humphreys “Our second quarter performance demonstrates the durability and inherent benefits of our multi-market approach during irregular demand cycles,” commented a spokesperson. We saw sales increase by double digits in three of our five marketing channels. Our strength was seen where we provided decorated “consumer ready” products close to or directly to end users.
During the first quarter of 2018, our Salt Life division continued to benefit the popularity of its lifestyle brands both in the United States and abroad, with record sales as well as profitability. Salt Life’s growth included double-digit growth across its branded channels, including retail and eCommerce. It also saw healthy growth in wholesale. Salt Life has also increased the scope of its licensing portfolio with a new partnership that will generate future royalty revenues in the multibillion dollar home furnishings market.
You can also find out more about us on our website. DTG2Go During the third quarter, the business continued to grow at a high rate with a topline increase of nearly 20% over the previous year. Digital print continues to have a long-term growth potential as traditional decorated apparel market players increasingly realize its advantages, including speed of delivery and cost-effectiveness. In the current environment of high interest rates, on-demand strategies are more beneficial in terms of reducing inventory.
The clothing market is still dynamic. Delta Direct and Global Brands Retail Direct saw double digit growth, despite the impact of the publicized high inventory levels in supply chains.
Mr. Humphreys We are still focused on managing working capital and inventory levels and taking advantage of the opportunities in our business. This will allow us to deliver products that are more consumer-ready and have a higher margin. The execution of these initiatives as well as the clearing of the high-priced inventory of cotton from last year sets the stage for better operating results during the second half and allows us to take advantage on demand accelerations.
The second quarter ended April 1, 2023:
Net sales $103,3 Million Comparing the second quarter net sales to that of the prior year 131.7 Million Dollars. Salt Life Group segment net sales grew over 16% to $9.0 Million Second quarter net sales in the prior year were $14,6 Million. Net sales in Delta Group Segment $91.3 million Compare $115.3 million Second quarter of the year prior.
The gross margins for the year were 14.7%, compared with 25.5% last year. This was due to production cuts to align manufacturing output to market demand and inflationary costs of cotton and other raw materials.
Selling, general, and administrative expenses (SG&A) were 19.3 million dollars, or 17.5%, of sales, as compared to 19.7 Million Dollars, which was 15.0% of the sales in the prior second quarter. The increase in SG&A as a percentage of sales was driven by the further expansion of Salt Life’s branded retail store footprint and the deleveraging effect of overall lower sales relative to the prior year period.
Operating income has declined from $14.3 MillionOperating loss is 10.9% of sales or. $5.4 millionThe sales tax is (4.9%).
The net income decreased from $10,1 MillionOr $1.44 Per diluted share, a loss is equal to $7.0 Million($1.00) per diluted share.
Net Inventory as of April 1, 2023Was $243.2 MillionThe sequential decline of $15.7 million The following is a list of the most recent and relevant articles. December 2022 There was an increase in the number of people who were able to access the internet on a daily basis. $55.5 Million The following is a list of the most recent and relevant articles. March 2022. The decrease in December 2022 The main reason for the reduction in production was to align manufacturing output to demand.
Total net debt includes capital lease financing as well as cash on hand. $194.3 Million As of April 1, 2023Increase in 9 1 Million dollars The following is a list of the most recent and relevant articles. December 2022 You can also find out more about the following: $40.9 million The following is a list of the most recent and relevant articles. March 2022. Cash available and cash on hand under the Company’s Terms of Business U.S. Revolving credit facility total $12.8 Million As of April 1, 2023The decrease of $14 Million The following is a list of the most recent and relevant articles. December 2022 You can also find out more about the following: $22.4 Million The following is a list of the most recent and relevant articles. March 2022With the decline from December 2022 The main drivers of working capital are investments in the company to support its needs.
The Company spent about $2 Million Capital expenditures in the second quarter of 2009 compared to $10.5 Million The second quarter expenditures were primarily focused on Salt Life’s retail store builds-outs, facility, information technology, and manufacturing improvements.
Conference Call
After the close of the market May 4, 2023Results for the second quarter fiscal year of 2023. April 1, 2023The upcoming release of. 4:30 p.m. ETSenior management from the Company will be holding a conference call in order to discuss their financial results as well as business outlook. Call 888-886 7786 to join. Calling from outside United StatesPlease dial 416-764 8658. A live webcast of the conference call will be available at www.deltaapparelinc.com. Visit the website 15 minutes before the webcast to download the necessary software and register. You can listen to the replay through June 4, 2023. For international callers, dial 412-317-66771. The replay access code is 06112508.
The following is a list of the most recent articles about Delta Apparel, Inc.
Delta Apparel, Inc.Together with its operating subsidiary DTG2Go, LLC, Salt Life, LLC. M.J. Soffe, LLC, is a vertically-integrated, international apparel company that designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life, Soffe, and Delta. The Company has been a leader in digital printing and fulfillment for direct-to-garment apparel since its founding. DTG2Go Supply chains can benefit from technology and innovation. The Company is a specialist in casual and sports products, and sells them through various distribution channels. These include outdoor and sporting goods retailers as well as independent and specialty shops, mid-tier and better department stores, mass retailers and eRetailers. U.S. Military, as well as through its e-commerce business-to-business sites. Direct-to-consumer products are available on www.saltlife.com, www.soffe.com, and www.deltaapparel.com. The company also has branded retail outlets. The Company’s facilities are spread across the globe. United States, Honduras, El Salvador. MexicoIt employs around 7,000 people in total. Additional information about the Company is available at www.deltaapparelinc.com.
Note of Caution Regarding Forward Looking Statements
This press release contains ‘forward-looking statements’ that are subject to risks and uncertainties. There are many factors that could cause the actual results of a project to differ from what was anticipated or forecasted. This includes, but is not limited to: U.S. The impact of changes in domestic and international economic conditions, as well as changes in government/social policies to control the spread of COVID-19, on our operations, financial conditions, liquidity and capital investments; Securities and Exchange Commission As updated in our subsequent Quarterly Reports on the Form 10-Q. Except where required by law Delta Apparel, Inc. Expressly disclaims the obligation to update any forward-looking statements in order to reflect new events, circumstances or other information that may have arisen since the date of this release.
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Company Contact Details:
Justin Grow, 864 232-5200 x6604
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Investors:
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Media:
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Source: Delta Apparel, Inc.