Activewear and lifestyle apparel maker Delta Apparel expects to see an 8% rise in overall net sales for the final quarter of its financial year, with growth in each of its business units.
Reporting its preliminary results for the three months to 3 October, the company said it anticipates sales of around US$116m, up from $108m in the prior year period. The Delta Group and Salt Life Group segments are expected to report year-over-year net sales growth of 8% and 12%, respectively. The company also expects to report an expansion of operating income compared to prior year.
“In what has remained an unprecedented period for our nation and our industry, we are proud of the strong finish to our 2020 fiscal year,” CEO Robert Humphreys said. “Our stellar preliminary fourth-quarter sales results were broad-based with growth in each of our business units. The advantages of the Delta Apparel strategic model with our diversified sales channels and broad geographic footprint, combined with our unique, integrated manufacturing platform, once again contributed to remarkable results this quarter and positions us well for profitable growth into the foreseeable future.”
Humphreys added the group’s Activewear business increased sales by over 5%, as demand remained strong for its Delta Catalog products, while consumers continued to actively seek Salt Life and Soffe products across multiple distribution channels with sales growth on its Soffe and Salt Life websites of over 80% and 30%, respectively.
The digital print business, DTG2Go, achieved net sales growth in the quarter of nearly 30% compared to prior year, driven by unit growth of around 35%. Delta Apparel announced this week it is expanding DTG2Go with the opening of its first ‘On-Demand DC.’
“Customers are seeing the benefits of the seamless supply chain of Delta garments within our on-demand model, with DTG2Go’s usage of Delta Catalog blanks jumping to a new record of approximately 40% utilisation compared to 20% in last year’s fourth-quarter and 30% during the June quarter,” Humphreys added. “This trend is promising as it creates a more efficient operation, reduces garment costs for our customers, and lowers working capital needs in the business.”
Delta Apparel will release its final fourth-quarter results on 19 November.