Decreased sales from its activewear segment offset gains in the retail-ready business for Delta Apparel in the fiscal third quarter leading the company to post a net loss after a year-ago gain.  Sales for the fiscal third quarter ending March 29, 2008 fell 11.4% to $75.4 million from $85.0 million for the year-ago period.

The retail-ready segment, which is comprised of the Soffe and Junkfood businesses, reported a 7.1% sales increase to $35.0 million for the third quarter of fiscal year 2008 compared to $32.7 million in the prior year third quarter. The higher sales were driven primarily by a 37.1% increase in Junkfood sales, the fourth consecutive quarter of double-digit sales growth.  Sales in the Soffe business were flat with the prior year, with increased sales in its military and college bookstore distribution channels being offset by lower sales in its retail and sporting goods channels.  Intensity Athletic was said to be up in double-digits for the quarter. Operating income in the retail-ready segment was $4.7 million for the quarter, an increase of $0.6 million.


The activewear segment, which is comprised of the Delta and FunTees businesses, reported sales of $40.3 million for the quarter, a 22.9% decrease from the prior year third quarter sales of $52.3 million. As a result, the activewear segment generated an operating loss of $3.6 million compared to operating income of $1.1 million in the prior year quarter. 


Overall, the company swung to a net loss of $385,000 or 5 cents a share, from a profit of $2.78 million, or 32 cents a share, last year.


For the fourth fiscal quarter, the company expects sales to be in the range of $88 million to $98 million and diluted earnings to be in the range of 40 cents to 46 cents per share.  For the fiscal year, net sales should be in the range of $305 million to $315 million with a diluted loss per share in the range of 10 cents to 16 cents, inclusive of restructuring related expenses of 39 cents per diluted share.


>>> Soffe may be known for its cheer short, but military sales appear to be a nice new growing business…