Delta Apparel narrows first-half losses after strong second quarter
today May 7, 2019
Delta Apparel Inc. on Monday reported top-line growth for the second quarter, on the back of a solid revenue increase that saw the U.S. company narrow first-half losses in fiscal 2019.
For the second quarter ended March 30, net sales totalled $102.8 million, up almost 3% from $100 million in the prior year. Net sales in the Delta Group segment increased almost 4%, while net sales in the Salt Life Group segment fell approximately 4%. Meanwhile, the apparel firm's digital print segment witnessed the most growth, said company CEO, Robert Humphreys.
"Our Delta Group segment posted a nice sales increase for the quarter and our fast-growing digital print business, DTG2Go, was once again a bright spot, with sales growth of 177%.”
The Greenville, South Carolina-based company said net income for the quarter was $0.9 million, or $0.13 per diluted share, compared to $3.6 million, or $0.48 per diluted share, in the prior year period, overcoming unpredictable weather patterns.
“We were pleased to deliver another quarter of top-line growth despite challenges from unseasonable weather in key markets and this year’s later spring break selling period," said Humphreys.
For the six months ending March 30, Delta Apparel net sales were $204.5 million, up 7.4%. Net sales in the Delta Group segment increased 8.2%, while net sales in the Salt Life Group segment increased 1.5% over the prior year.
Despite the half-year sales uptick, the company recorded a net loss for the period of $209 thousand, or $0.03 per diluted share. However, the result was an improvement over the prior year period’s net loss of $6.3 million, or $0.87 per diluted share, as the firm works hard to narrow losses.
“Both our Delta Group and Salt Life Group segments achieved top-line growth for the first half of the year and we are off to a strong start to the second half," concluded Humphreys.
"We see exciting opportunities for growth and increased profitability across all of our businesses as we leverage our investments in manufacturing technology and distribution, and expand into additional sales channels."
Copyright © 2020 FashionNetwork.com All rights reserved.