Delta Apparel Inc. announced preliminary results for its 2018 fiscal first quarter ended December 30, 2017.

The company expects overall net sales for the first quarter of its 2018 fiscal year to be in the range of $88 to $90 million, a 3-5 percent increase from the $85.3 million in revenue in the prior year quarter, and 16-18 percent sales growth after adjusting for the $9.4 million in revenue in the prior year quarter from the since-divested Junkfood Clothing business. Notable to the overall sales increase is that each business unit achieved double-digit sales growth over the prior year. Driven by the strong sales performance, the company expects to show pre-tax profitability in the fiscal 2018 first quarter, which is typically its most challenging quarter, compared to a net loss of 8 cents per diluted share in the prior year period.

“We are extremely pleased with our strong start to fiscal year 2018,” said Robert W. Humphreys, Delta Apparel, Inc.’s chairman and chief executive officer. “Our double-digit revenue growth and expected profitability in our seasonally slowest quarter reflects solid execution within each of our businesses and builds upon our strong finish to fiscal year 2017. Our team has done an excellent job of expanding product offerings, increasing distribution, and winning market share. Our brands continue to resonate with consumers and the new Salt Life and Soffe retail stores opened during the quarter provide exciting brand-building and consumer awareness opportunities in key markets for those businesses. We look forward to providing our full results for the first quarter during our upcoming earnings call.”

The company continued to repurchase its shares during the fiscal year 2018 first quarter, acquiring 145 thousand shares on the open market at a cost of $3.0 million, or an average price of $20.69 per share. As of December 30, 2017, the company had 7.2 million shares outstanding.

Management will be meeting with analysts and investors and presenting at the ICR Conference in Orlando, Florida on Monday January 8, 2018.

Delta Apparel, Inc., along with its operating subsidiaries, M. J. Soffe, LLC, Salt Life, LLC and Art Gun, LLC, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of lifestyle basic and branded activewear apparel, headwear and related accessories.

Photo courtesy Soffe