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.
- Under Armour on track with new UAS sportswear line
- Myanmar garment exports surged 20% in 2015
- EU trade ministers push on TTIP and Canada pacts
- Unravelling cotton's supply and demand challenges
- What does the future hold for world wool supply?
- US retailers urge action on Hanjin Shipping crisis
- Zara launches eco-friendly Join Life collection
- Adidas unveils first Speedfactory running shoe
- Bangladesh calls for US duty-free apparel access
- Ascena Retail disappoints amid challenging year
- Too Many Standards
- Apparel (GLOBAL) - Industry Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Ralph Lauren Corporation : Retailing - Company Profile, SWOT & Financial Analysis
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras