Delta Apparel, Inc. reported record fourth quarter fiscal 2008 revenue of approximately $105 million, an increase of over 14% from the prior year fourth quarter. This brings full year fiscal 2008 revenue to a record $322 million.
Following the record quarterly sales result, Delta raised its fourth quarter earnings guidance to net income per diluted share of 45 cents to 49 cents. This result is up from prior guidance of net income in the 40 cents to 46 cents per diluted share. For the full year, the company now expects a diluted loss per share to be in the range of 7 cents to 11 cents, inclusive of restructuring related expenses of 39 cents per diluted share.
Robert W. Humphreys, president and CEO, commented, “Our business units performed well during our fourth quarter despite the softness in the overall U.S. economy and weakness in the retail environment. Demand for our products continued to strengthen as the quarter progressed allowing us to exceed our revenue expectations for the quarter. Each of our businesses achieved sales growth in the fourth quarter compared to the prior year, with the biggest increases coming from our Junkfood and Delta catalog businesses. The revenue growth in Junkfood is the result of strong demand through its traditional distribution to high-end retail stores and boutiques, as well as the success of the co-branded Junk Food Loves GapKids and Junk Food Loves babyGap vintage tees launched in late calendar year 2007. The positive collaboration of these brands is resulting in Junkfood Clothing products and marketing materials being featured in 1,200 GapKids storefront windows during July.”
Mr. Humphreys continued, “The sales growth, combined with reaching our targeted margins, is allowing us to exceed our earnings outlook for the quarter despite our increased bad debt reserves for the bankruptcy filing of a customer, which reduced our earnings by approximately $.06 per share. While we are encouraged with our results for our 2008 fourth quarter, we remain cautious about the current economic and retail conditions. We are focused on positioning ourselves for the future by building our diverse distribution channels and continuing our cost savings initiatives. We are monitoring our operations closely and expect improvement in our balance sheet in fiscal year 2009.”
