US: Delta Apparel swings to Q1 net loss
Delta experienced strong sales growth in its Salt Life business
US clothing company Delta Apparel has postponed confirming or updating its full-year guidance after moving to a net loss in its first-quarter.
Lower sales coupled with higher costs pushed Delta Apparel to a net loss of US$1.6m in the three months ended 28 December. This compared to earnings of $46,000 in the prior year period.
Net sales also dropped, falling 6.4% to $100m versus $106.8m last year. Continued strong sales growth in the firm's Salt Life and Art Gun businesses offset a decline at Soffe as well as lower sales in its Junkfood and The Game divisions.
"We have many reasons to be optimistic about our business, but we believe our optimism must be tempered by certain risks that are in the marketplace," said chairman and CEO Robert Humphreys.
"In recent weeks, speculation in commodities markets has caused cotton prices to rise significantly. It is still too soon to know if selling prices will reflect these higher raw material costs or what the potential impact on unit volumes may be."
As a result, the company said it expects to be in a better position when it reports its quarter results, to either confirm or update its guidance for the fiscal year ending 27 September.
Apparel & Non-Apparel Manufacturing in the United States industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018...
- Sustainable fibres, finishes and processes at ITMA
- Freeing up working capital in the supply chain
- Five ways to tackle market and demand volatility
- ‘Fixing Fashion’ one stitch at a time
- Why China 5-year plan won't change garment-making
- Uniqlo under fire again for China worker abuses
- German sustainable textile scheme heads to Vietnam
- 3D tool uses product data to shake up shopping
- Fast Retailing in deal for laser treated garments
- PETA calls for wool boycott on “gruesome” exposé
- Wearable technology: The future market potential for smart garments and e-textiles
- Practical Brand Sourcing Strategy
- Statistics: Trends in Global and Regional Man-made Fibre Production - 2015
- Trade and Trade Policy: The World’s Leading Clothing Exporters and Key Markets 2015
- Myanmar's Garment Sector in 2015 - now with updated members' directory