Delta Apparel, Inc. is expanding its digital print business with the opening of an integrated digital print and distribution facility in Phoenix, AZ combining DTG2Go’s digital print business with Delta Apparel’s supply of garments. This new facility, expected to open in August, provides the expanded capacity for DTG2Go to meet the demands for its digital print model.
The Phoenix facility will increase DTG2Go’s footprint to eight digital printing locations across the U.S. further expanding its one-day shipping reach into multiple markets including Phoenix, Tucson, San Diego and the greater Los Angeles areas.
Deborah Merrill, Delta Group president, commented, “We are thrilled to be in a position to continue to invest in our strong growth business, DTG2Go. The Phoenix facility expands our distribution footprint now enabling us to serve nearly 60 percent of the U.S. population with one-day shipping. It also gives us the ability to increase our overall capacity with additional equipment to better serve our existing customers and bring on new customers seeking the unique, on-demand model we offer.”
Delta Apparel reported that following an April year-over-year sales increase of over 25 percent, DTG2Go’s May sales accelerated to a 32 percent year-over-year growth. Importantly, approximately 40 percent of the increase in orders received in the quarter to date is attributable to onboarding new customers to the DTG2Go platform. Continuing the trend from April, over 30 percent of DTG2Go’s May production was printed on a Delta-branded garment, which is more than twice that of a year ago.
Merrill continued, “We continue to see incredible demand for our unique DTG2Go model. We are the only digital print supplier in the world that can offer a seamless, vertically-integrated solution utilizing our proprietary software and internal supply chain to offer a fully-decorated, on-demand product shipped directly to the consumer eliminating non-value-added costs and reducing the risk of third-party supply chains. We see this as a tremendous competitive advantage. With the recent disruptions in supply chains and the inability for consumers to shop in traditional retail stores due to COVID-19, the benefits of our DTG2Go model have become apparent in the marketplace. We were able to continue operations utilizing our network of facilities across the country giving our existing customers, and new customers, a source of expanded revenue during times when needed most.”
As a part of its expansion, the Company plans to increase its fleet of digital printers by 10 percent, including adding 8 new Kornit Atlas printers to Phoenix. Overall, Delta said the Phoenix facility gives DTG2Go space to operate 16 digital print machines giving DTG2Go future expansion opportunities.
“The additional equipment for the new Phoenix location provides production capacity to meet the impressive demand we are experiencing,” commented Merrill. “In a business that has historically achieved double-digit operating profits and greater than 20 percent EBITDA margins, this new investment was an easy decision to make. We believe customer adoption rates to the innovative, on-demand model will accelerate in the upcoming year, and we expect the addition of our eighth facility further expanding our capacity and reach to consumers will further solidify our leadership position in the market.”
Photo courtesy Delta Apparel/DTG2Go
