Delta Apparel, Inc.’s sales increased 11.9 percent to approximately $475 million for its fiscal year ended July 2, up from $424.4 million in its prior year. The increase was driven by organic growth of approximately 7 percent as well as sales from the acquisition of The Cotton Exchange, acquired in July 2010.
The company also said it expects full year 2011 earnings to be in the range of $1.96 to $1.98 per diluted share, an increase of over 40 percent from the $1.40 earned in the prior year.
Delta expects to release full results on August 31.
Robert W. Humphreys, chairman and CEO, said fiscal 2011 marked Delta’s eighth consecutive year of revenue growth and an all-time record earnings for the company. In addition to the acquisition of The Cotton Exchange and the Salt Life exclusive license, he said results benefited from marketing and merchandising initiatives that drove growth in both its basics and branded segments, as well as investments to expand capacity within its vertically integrated manufacturing platform.
For its fiscal year ending June 30, 2012, the owner of M. J. Soffe and Junkfood Clothing Company, expects net sales to be in the range of $500 to $520 million, an increase of 5 percent to 9 percent, all of which is expected to be organic growth. EPS is expected to be in the range of $2.00 to $2.15 per share.
The company also owns To The Game, Art Gun, and TCX.
Humphreys added, “Our brands appeal to a large and growing consumer base and we expect to see significant revenue growth in some of our newer branded apparel lines. We expect to continue the expansion of our manufacturing platform to support our anticipated growth and further leverage our fixed costs. While we will have higher raw material costs flowing through cost of sales in the upcoming year, we believe we can mitigate the impact of this through our continuous process improvement initiatives and leveraging of our fixed administrative expenses. In addition, our strong balance sheet gives us the strength and flexibility to continue to make prudent strategic investments towards our growth in the future.”
