US activewear maker Delta Apparel said it expects year-on-year increases in revenue and profit for the first quarter after CEO Robert Humphreys hailed a strong start to the year.
In its preliminary results update for the three months to 30 December, the company said it expects overall net sales to be in the range of US$88-$9m, a 3-5% increase from last year’s $85.3m, and 16-18% higher after adjusting for the $9.4m in revenue in the prior year quarter from the since-divested Junkfood Clothing business.
Notable to the overall sales increase is that each business unit achieved double-digit sales growth over the prior year, Delta said. “Driven by the strong sales performance, the company expects to show pre-tax profitability in the fiscal 2018 first quarter, which is typically its most challenging quarter, compared to a net loss of $0.08 per diluted share in the prior year period,” it added.
“Our double-digit revenue growth and expected profitability in our seasonally slowest quarter reflects solid execution within each of our businesses and builds upon our strong finish to fiscal year 2017,” said Humphreys.
“Our brands continue to resonate with consumers and the new Salt Life and Soffe retail stores opened during the quarter provide exciting brand-building and consumer awareness opportunities in key markets for those businesses.”
Delta Apparel will release its final financial results for the first quarter on 5 February.
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