January 06, 2023
Delta Apparel Says Q1 Sales Dipped Amid ‘Headwinds’
The Top 40 supplier reported the decline in a release of preliminary results for the fiscal year quarter ended Jan. 1.
Preliminary financial results show that Delta Apparel’s (asi/49172) total sales declined about 4.2% year over year in the Top 40 supplier’s fiscal year 2023 first quarter, which concluded January 1.
The Duluth, GA-headquartered firm said sales across all business channels, which encompass much more than just business with promo products distributors and apparel decorators, tallied about $106 million in fiscal Q1. That was down from $110.7 million in the prior year’s first quarter; that previous-year performance was a Q1 record for the company.
A decline in sales to mass retail customers, which was a result of what Delta Apparel described as challenging market conditions, drove the overall topline sales decline. Still, other business channels reportedly performed well: The Delta Group segment, which includes sales to promo distributors and apparel decorators, was led by 20% growth at DTG2Go – an on-demand printing service.
“The top-line performance we delivered this quarter showcases the inherent resiliency of our business model and the strength we saw in the majority of our sales channels allowed us to overcome some demand-related headwinds in the mass retail channel,” said Delta Group CEO Robert W. Humphreys.
Delta Apparel, a publicly traded company, will release full financial results in the coming weeks. That data will include word on earnings and more.
Business with screen printers and promotional products distributors helped Delta Apparel increase full fiscal-year 2022 sales 9.8% in its Delta Group business channel – a rise that helped fuel an overall 11% year-over-year jump in total company revenue to $484.9 million. Still, net income/earnings declined year over year.
Based on estimated 2021 North American promo product revenue of $46.7 million, Delta Apparel ranked 34th on Counselor’s most recent list of the largest suppliers in the industry.