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...
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