Delta Apparel Inc. announced today that sees strong, broad-based revenue growth for its 2022 fiscal first quarter ending January 1, 2022.
The company anticipates overall net sales for the first quarter of its 2022 fiscal year to be above $104 million, an increase of over $9 million from the prior year’s first-quarter sales of $94.7 million. This would be a record first-quarter revenue for the company’s continuing operations, on track to surpass its previous highest first-quarter sales of $101.7 million in its 2019 fiscal year.
Robert W. Humphreys, chairman and CEO, commented, “We are extremely pleased with our strong December quarter-to-date performance which, despite continued inventory constraints, supply chain disruptions and U.S. labor shortages, is exceeding our internal expectations. We believe the strong broad-based growth we are achieving across our business units proves the benefit of our strategic model and the power of the Salt Life brand with consumers.”
“We remain optimistic that we are well-positioned to achieve solid top-line growth in each of our fiscal 2022 quarters, with an opportunity to deliver double-digit growth for the full fiscal year. With the strength of our balance sheet and the overall business, we see our existing Share Repurchase Program as a part of our capital allocation strategy, giving us the opportunity to continue to invest in Delta Apparel to maximize shareholder value for years to come,” concluded Humphreys.
The forecasted estimates and anticipated results contained herein represent expected results that are based on management’s initial review of operations through November 2021 and remain subject to adjustment. These projections are based on estimates and assumptions that management believes are reasonable but are highly speculative. Actual results may vary from forecasts or projections.
Share Repurchase Program Continues
The company believes its future free cash flow, cash on hand and availability under its credit facilities are sufficient to support its growth initiatives while also providing liquidity for the company to continue repurchasing its common stock pursuant to its previously announced Share Repurchase Program.
At the end of its fiscal 2021 fourth quarter, $7.5 million remained authorized by the company’s Board of Directors for share repurchases. Since the inception of the Share Repurchase Program, the company has repurchased nearly 3.6 million shares of common stock for an aggregate of $52.5 million. All purchases are made at the discretion of management and pursuant to the safe harbor provisions of SEC Rule 10b-18.
Delta Apparel, Inc., along with its operating subsidiaries, DTG2Go, LLC, Salt Life, LLC, and M.J. Soffe, LLC, manufactures and sources, a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life, Soffe and Delta.
Photo courtesy Delta Apparel/Salt Life
