July 19, 2021
Delta Apparel, Cintas Report Sales Gains
Both are Top 40 promotional products companies.
Two publicly traded Top 40 promotional products companies have reported year-over-year growth in their recently ended fiscal quarters.
Greenville, SC-headquartered Delta Apparel (asi/49172) said that preliminary results show that sales in its fiscal third quarter, ended July 3, increased 65% compared to the same three-month span the prior year to approximately $118 million.
The stronger sales, along with higher gross margins and closely managed expenses, is expected to result in earnings of more than $0.90 per diluted share once final results are announced Aug 5.
Delta Apparel’s Salt Life brand sales were strong across all sales channels, growing 150% in the direct-to-consumer sales segment in particular, according to the company. The Delta Activewear division, which includes sales to promo, outperformed expectations, the supplier reported.
“We delivered results significantly ahead of expectations considering the inventory constraints and supply chain disruptions we experienced during the quarter,” said CEO Robert W. Humphreys. “We continue to see high demand from large retail and global brand partners seeking the products and value-added services we can uniquely deliver.”
Meanwhile, Top 40 distributor Cintas (asi/162167) reported sales gains for its full fiscal year and for its fourth quarter, which both ended May 31. For the year, total company global revenue was $7.12 billion compared to $7.09 billion for fiscal 2020. Diluted earnings per share for fiscal 2021 were $10.24, compared to $8.11 in fiscal 2020.
For the fourth quarter, Cintas’ revenue was $1.84 billion compared to $1.62 billion in last year’s fourth quarter. Diluted EPS was $2.47 in Q4, a year-over-year increase of 83%.
“Our prospects for continued growth are great,” said Cintas CEO/President Todd M. Schneider. “For our fiscal 2022, we expect revenue to be in the range of $7.53 billion to $7.63 billion and diluted EPS to be in the range of $10.35 to $10.75.”
With estimated North American promotional product revenue of $40.8 million, Delta Apparel ranked 35th on Counselor’s most recent list of the largest suppliers in the industry. Cintas ranks as the 15th largest distributor in promo based on estimated 2020 North American industry revenue of $163.8 million.