US: Delta Apparel “on track” despite weak Q2
- Q2 net profit US$46,000, versus $13.6m loss
- Net sales up 1.2% to $106.8m
- CEO says company on track to meet FY guidance
Delta Apparel completed a weaker than expected second quarter, recording a tiny profit and boosting sales by only 1.2%.
The period ending 29 December was aided by solid growth in Delta Catalog, Junkfood, The Game and Art Gun, offset by continued softness in Soffe and lower selling prices for FunTees and Delta Catalog thanks to lower-priced cotton.
But company chairman and CEO Robert Humphreys, while admitting that the quarter had been weaker than expected, said Delta remained on track to meet its full-year guidance of sales increasing 3% to $500-510m and net income of $1.65-1.80 per diluted share.
“During the second quarter we completed several projects that are designed to reduce costs and leverage customer relationships,” he said.
“Obviously, the Soffe business offers one of our biggest challenges as well as one of our biggest opportunities.
“In this regard, we are addressing Soffe’s cost structure to bring it in line with that of our other business units.”
US clothing company Delta Apparel is to consolidate its US screen printing operations, closing its Soffe decoration facility at Wendell, North Carolina....
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