Georgia-based Delta Apparel posted net sales of US$126.9m for the third quarter ended 2 July, an increase of 7% compared to the prior year period’s net sales of $118.7m.

Net sales in the Delta Group segment grew 3% to $106m from $102.6m a year earlier, while in the Salt Life segment net sales grew 30% to $20.9m from $16.1m.

The results surpass Delta Apparel’s expectations last month for net sales for the June quarter to total about $126m, which would have marked a 6% rise.

Net income, meanwhile, was $6.2m as compared to the prior year’s net income of $8.2m.

On a consolidated basis, third quarter gross margins were 24.2%, declining 130 basis points from 25.5% in the prior year, largely as a result of inflationary cost pressures, which are now flowing through the cost of sales. During the quarter, the impact of higher cotton prices, energy, and freight costs were the largest drivers of margin pressure.

“We are pleased to achieve another quarter of revenue growth in what remains a dynamic operating environment. We delivered third-quarter sales growth across both our Delta Group and Salt Life Group segments. In our Delta Group segment, we registered year-over-year sales growth of 3% as we continued to benefit from our broad channels of distribution. Demand increased for both our Global Brands and on-demand digital print business, somewhat offset by a decline in our Delta Direct business. At Salt Life, we saw strong year-over-year sales growth of 30%, further validating the brand’s broad lifestyle appeal,” says Delta Apparel CEO Robert Humphreys.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He adds: “Overall, we made good progress in the third quarter with a solid performance as our team stayed focused on our long-term strategies while simultaneously managing through a changing economy and consumer expectations. Our manufacturing investments have created scale efficiencies and platform flexibility positioning us well to continue to grow our business.”

Delta Apparel recently expanded its digital print business through the installation and utilisation of newly developed digital print technology.