Activewear and lifestyle apparel maker Delta Apparel has reported stronger than expected financial results for its second-quarter, with double-digit sales growth and profitability expansion in both business segments.
For the three months to 3 April, net sales amounted to US$108.6m, an increase of 12% from $96.7m in the prior-year period.
Reporting its preliminary results for period last month, the company said it anticipates sales of around $108m.
Net sales in the Delta Group segment grew 12% driven by the demand in the market for activewear apparel, particularly in the company’s direct-to-retail and brand-direct channels, which grew over 40% compared to last year.
Net sales in the Salt Life Group segment increased 16% with notable performance in the direct-to-consumer channels, with sales growth of over 175% and 40% at branded retail stores and saltlife.com site, respectively.
Net earnings for the period, meanwhile, were $4.4m compared to $1.3m last time.
“In every aspect, our March quarter results showcase the positive trajectory of the company,” said CEO Robert Humphreys. With double-digit sales growth and significant profitability expansion in both business segments, we have proven the benefits of our broad customer base and diversified channels of distribution.
“Supported by our vertically integrated, flexible manufacturing platform, broad distribution and fulfillment network, and strong business systems with unique proprietary technology, we believe we are well-positioned to continue to deliver compelling top and bottom-line results for our shareholders.”
The company recently announced it is enhancing its DTG2Go digital print and fulfilment solution to give users the tools to quickly and efficiently bring more graphic designs to the on-demand model.