US: Delta Apparel "on track" thanks to record Q1 sales
By Leonie Barrie | 26 October 2012
- Q1 net sales rose 5.3% to $130.1m
- Net income slipped 18% to $3.6m
- Sees "tenth consecutive year of record revenue growth"
Activewear and headwear maker Delta Apparel Inc says it is on track to achieve its full-year goals after posting record revenues in its first quarter.
Net sales for three months to 30 September rose 5.3% to $130.1m, up from $123.5m a year ago.
Net income slipped 18% to $3.6m or $0.41 per share, from $4.4m or $0.50 per share, last time. It blamed a one-time charge of $1.2m related to an internal audit investigation.
The company said strong organic growth and improved margins in its basics and Art Gun businesses was offset by lower average selling prices resulting from cotton price declines and product mix changes.
"We are now on the downside of the cotton price spike that hampered business during the previous fiscal year and can currently offer more competitive pricing while simultaneously improving margins," said chairman and CEO Robert Humphreys.
"The market share gains realized in our basics segment during the first quarter are encouraging and our expectation is to build on this large base as the year progresses.
"We anticipate revenue growth at Junkfood, The Game and Art Gun during the remainder of the year, offset to some degree by sales declines in Soffe branded product at department stores."
For the full year the company expects revenues to rise by around 3% to a range of $500m to $510m, with net income of $1.65 to $1.80 per share.
Sectors: Apparel, Finance, Manufacturing
Companies: Delta Apparel
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