January 16, 2018
Delta Apparel Drives Q1 Sales Rise
Top 40 supplier Delta Apparel (asi/49172) increased net sales 3% to 5% during the first quarter of its fiscal year 2018, which ended December 30, according to preliminary results from the Georgia-based company.
In a statement, Delta Apparel said revenue rose to the range of $88 to $90 million, up from $85.3 million during Q1 2017. After adjusting for the $9.4 million in revenue during the prior year’s Q1 from the since-divested Junkfood Clothing brand, year-over-year quarterly sales growth tallied 16% to 18%, the supplier said. Notably, Delta Apparel reported that each of its business units achieved double-digit sales growth over the same quarter in 2017.
Propelled by the strong sales performance, Delta Apparel expects to show pre-tax profitability in the fiscal 2018 first quarter, compared to a net loss of $0.08 per diluted share in the prior year period.
“We are extremely pleased with our strong start to fiscal year 2018,” said Robert W. Humphreys, Delta Apparel’s chairman and CEO. “Our double-digit revenue growth and expected profitability in our seasonally slowest quarter reflects solid execution within each of our businesses and builds upon our strong finish to fiscal year 2017. Our team has done an excellent job of expanding product offerings, increasing distribution and winning market share. Our brands continue to resonate with consumers and the new Salt Life and Soffe retail stores opened during the quarter provide exciting brand-building and consumer awareness opportunities in key markets for those businesses.”
Final and complete financial results for the quarter will be released after the market closes on February 5, the company said.
In the latest rankings, Counselor lists Delta Apparel as the 38th largest supplier in the promotional products industry, with reported 2016 North American promotional product sales of $45 million.