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Delta Apparel Posts Record Sales in 3q

(Filed Under Financial and General Interest News). Activewear maker Delta Apparel Inc. cited record-breaking net sales of $125 million during the third quarter ended April 2, a 15.8 percent increase from last year’s comparable period.

Driven by an organic growth increase of 9.3 percent and additional revenue from the recently-acquired Cotton Exchange, branded segment sales increased 17.5 percent, to $54.3 million.

The basics segment cited a sales increase of 14.5 percent, or $70.6 million, driven by growth in both catalog and private label products. The revenue growth was the result of a 19.6 percent increase in average selling prices partially offset by a slight decline in units sold.

"Delta Apparel Inc.’s marketing and merchandising iniatives in both business segments, coupled with favorable manufacturing performance and continued ability to leverage our fixed costs, were the key components in delivering this significant earnings expansion on double-digit revenue growth," said Robert Humphreys, chairman and C.E.O of the company. "We feel having a vertically integrated manufacturing platform in the western hemisphere is a strategic advantage, allowing us to meet the needs of retailers on price, quality and speed of delivery."

Based on these results, Delta Apparel has raised its full year sales and earnings guidance. It now expects earnings to be in the range of $1.85 to $1.95 per diluted share from its previous guidance of $1.55 to $1.70 per diluted share, an increase of 32 to 39 percent. It expects sales to range from $465 to $475 million, a 10 to 12 percent increase.

Delta Apparel is an international design, marketing, manufacturing and sourcing company with a portfolio of branded and private label activewear and headwear. Its operating subsidiaries include M.J. Soffe, Junkfood Clothing, To The Game and Art Gun.

more Financial and General Interest News >>

Published 05-04-2011 by Amanda Torres Price

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