Delta Apparel, Inc. said significant growth within its Basics segments drove its overall top line to record results for the fiscal fourth quarter ended Jan. 1, 2011. Net earnings were $1.4 million, or 16 cents per diluted share, compared to earnings of about $1.0 million, or 11 cents per share, in the year-ago period.
Revenues for the Greenville, SC-based activewear and headwear manufacturer grew14.9% to $104.7 million from $91.2 million in the prior-year quarter.
The Basics segment (formerly called the Activewear segment), was the primary growth driver for the quarter, posting organic sales growth of 23.9% to $56.2 million, driven by solid results among both catalog and private label products.
The Branded segment (formerly the Retail-Ready segment), which consists of Soffe, Junkfood, To The Game and Art Gun, saw sales grow 5.9% to $48.5 million versus the prior-year period. Management said sales growth primarily resulted from additional revenue from The Cotton Exchange, which was acquired in July of 2010. The Cotton Exchange is the college bookstore division of Soffe. Management said sales growth spurred by The Cotton Exchange was partially offset by a decline in the company’s vintage license products.
Gross margins declined approximately 300 basis points to 20.9% of sales, due primarily to a higher mix of basics product sold in the second quarter compared to the prior year as branded products typically carry higher margins.
