Delta Apparel, Inc. fiscal third quarter net sales increased 22.6% to $85.0 million from $69.4 million in the prior year's third quarter. The increase was primarily due to the addition of $19.0 million in sales from FunTees and sales growth in the Soffe business, offset by lower sales in the Delta catalog and Junkfood businesses.
The Retail-Ready segment, which includes the Soffe and Junkfood businesses, reported a 0.4% sales decline to $32.7 million for the third quarter of fiscal year 2007. The sales decline at Junkfood more than offset a 3.6% gain at Soffe. Segment operating income increased 5.1% to $4.1 million for the period.
The Activewear segment, which includes Delta Apparel and the newly acquired FunTees, reported sales of $52.3 million for quarter, jumping 42.9% from $36.6 million last year. Without FunTees, segment sales would have declined 8.7%. Operating income declined 8.3% to $1.1 million compared to $1.2 million in fiscal Q3 last year.
Net income for the third quarter was $2.8 million, or 32 cents per diluted share, compared to the prior year's level of $2.7 million, or 31 cents per diluted share.
For the fourth fiscal quarter, Delta Apparel expects sales of $100 million to $106 million with diluted earnings per share of 50 cents to 55 cents.
For the full fiscal year, the company expects net sales of $320 million to $326 million and diluted earnings per share in the range of $1.15 to $1.20, up from previous fiscal guidance of revenues ranging from $315 million to $330 million and diluted earnings per share of $1.33 to $1.46.
