Delta Apparel Takes Hit on Short Q4, Tough Spring for Soffe…

Delta Apparel, Inc. posted solid results for the fiscal year ended July 2, but the company took a big step back in the fourth quarter as sales at both the Delta and Soffe divisions declined for the period. Total fourth quarter sales were down more than 9.0% to $66.3 million, compared to $72.9 million in the year-ago period, a decline DLA said was due, at least in part, to one less week in the fiscal calendar this year. Net income fell 40.9% in the period to $3.2 million, or 37 cents per diluted share, compared to $5.4 million, or 64 cents per diluted share, in Q4 last year.

Sales at MJ Soffe were down nearly 18% in the fourth quarter to $25.6 million, compared to roughly $31.1 million in the year-ago period. DLA said about $2.2 million of the $5.5 million decline was due to the loss of the extra week. The Soffe decrease was across all channels, with sporting goods representing about half, or a 14% decline, of the shortfall. However, re-orders for July were strong, driving a 17% increase for the month. Military sales were down 23% in Q4, but are up 23% for July.

Delta sales dipped about 2.4% for the period to $25.6 million on the shorter quarter and “supply limitations in the basic tee category.” For the year, catalog direct sales made up 79% of sales, while private label represented 20%, and distributors delivered about one percent of the total. DLA does not expect to have distributor sales going forward.

Delta made another acquisition last week, acquiring Junkfood Clothing in a deal worth $20 million plus incentives. Junkfood markets nostalgic rock and cartoon t-shirts.