Delta Apparel, Inc. raised its expectations of net sales and earnings for its 2010 fiscal year ending July 3, 2010. For the full fiscal year 2010, the the parent of M.J. Soffe now expects net sales of $395 to $400 million compared to its prior guidance of net sales of $375 to $385 million. EPS is now expected to be in the range of $1.20 to $1.30, up from prior guidance of 95 cents to $1.10.
“Sales trends in each of our business units continue to be strong as we proceed through the second half of the fiscal year,” commented Robert W. Humphreys, Chairman and Chief Executive Officer. “Gross margins are exceeding our original target, driven by manufacturing efficiencies at the company-owned facilities and a favorable shift in product mix. We continue to utilize the strengths of each of our businesses to enhance top-line growth and leverage our operating platform. We are encouraged by our recent performance and believe we are well positioned to capitalize on the many long-term growth opportunities that still lie ahead for Delta Apparel, Inc.”
While the company said it remains concerned about the U.S. economy, it believes it has taken into consideration the heightened risk factors associated with the current economic climate. Significant deterioration in the economy could, however, negatively impact the company’s ability to achieve its expectations.
Delta Apparel’s businesses include M. J. Soffe, LLC, Junkfood Clothing Company, To The Game, LLC, and Art Gun, LLC.
