Delta Apparel, Inc. announced preliminary sales and operating results for its 2021 fiscal second quarter ended April 3, 2021.
The company expects net sales for its March quarter to be approximately $108 million, a 12 percent increase compared to the prior year. The second quarter double-digit sales growth in the Delta Group and Salt Life Group segments, coupled with margin expansion and controlled spending, is expected to result in operating income more than double the prior year March quarter and diluted earnings per share in the range of $0.58 to $0.60 compared to $0.19 in the prior-year period.
Robert W. Humphreys, the company’s chairman and chief executive officer, commented, “We continue to be very encouraged with the broad-based demand we are seeing for our products in the many markets we serve. I am incredibly proud of our team’s hard work and dedication to service the demand from existing customers while building additional channels of distribution that should fuel further growth in the future. Our Activewear business had an outstanding quarter, led by over 40 percent growth versus prior year in our FunTees business shipping to major brands and retailers alike. Our DTG2Go digital print business saw a slower start to the quarter but gained momentum as the quarter progressed, with double-digit unit growth in the March period and the launch of several new customers during the month. Consumers continued to seek out the Salt Life brand across all channels with a notable performance at our branded retail stores and e-commerce site, which grew over 175 percent and 40 percent, respectively, compared to last year. We are entering the season with the largest wholesale order book on record for Salt Life, showing the continued strength of the brand at retail.”
Humphrey’s further commented, “Delta Apparel’s strategic advantages, namely our vertically integrated and innovative supply chain, diversified sales channels, and authentic brands, differentiate us in the market and we believe are the key reasons we are able to deliver such compelling top-line and bottom-line results for our stakeholders. Our manufacturing team has been ahead of schedule in increasing our production to record levels to service the demand we are seeing for our activewear and branded apparel. Although we remain inventory constrained in the near term, we are working diligently to serve our customers’ needs and ultimately rebuild our inventory levels for future opportunities. We look forward to providing more information on our March quarter results and business outlook in early May.”
Final and complete financial results for the company’s fiscal year 2021 second quarter ended April 3, 2021 will be released after the market close on May 6.
Photo courtesy Delta Apparel/Salt Life