Delta Apparel, Inc., which also presented at the ICR XChange, said it expects fiscal second quarter revenues to be approximately $72 million to $73 million, down from its prior guidance of $74 million to $78 million. Earnings are now expected to be in the range of five cents to seven cents per diluted share versus its prior guidance of 14 cents to 18 cents.

The quarter was primarily impacted by slower than projected sales in the company’s non-branded activewear business, which missed expectations by approximately $5 million.

Bob Humphreys, the company's president and CEO, said they saw selling price improvements from the first quarter, but the weak retail environment during the holiday season hurt their ability to achieve the price targets and sales volumes they had forecasted. Humphreys said Delta anticipates adjusting its manufacturing schedules in the second half of the year to reflect the lower activewear sales.

Second quarter sales in the company’s Junkfood business strengthened over the first quarter and were in-line with expectations.

For the full fiscal year, DLA is lowering its sales expectations to $315 million to $330 million from its prior guidance of $325 million to $340 million. The company now expects diluted earnings per share to be in the range of $1.33 to $1.46 per diluted share for the 2007 fiscal year versus its prior guidance of $1.81 to $2.00 per diluted share.