Delta Apparel sees full-year earnings dip despite fourth-quarter growth
Delta Apparel Inc. announced on Friday announced fourth-quarter net sales of $115.5 million, a slight increase over prior year period net sales of $114.7 million, thanks to strong growth in the apparel company's Salt Life brand.
The Duluth, Georgia-based company said net sales in the Salt Life group segment increased 15.6% for the three months ending October 1, while net sales in the Delta group segment decreased 1.1%.
Likewise, annual net sales increased 11% to $484.9 million, from $436.8 million in the prior year. Net sales in the Delta group and Salt Life group segments increased 9.8% and 20.8%, respectively, over the prior year.
Full-year net income was $19.7 million, or $2.80 per diluted share, compared to net income of $20.3 million, or $2.86 per diluted share, in the prior year.
"We are pleased to announce results marking our second consecutive year of strong organic growth," said Robert Humphreys, the company’s chairman and chief executive officer.
"The combination of our diversified go-to-market strategies with our vertically integrated manufacturing and service platforms allowed us to successfully navigate a dynamic business and economic environment. All five of our market channels - Delta direct, global brands, retail direct, DTG2Go, and Salt Life - delivered year-over-year sales growth in fiscal 2022.
"Within our Delta group segment, we continued to see solid growth in our regional screen print and ad specialty businesses along with increasing interest in the supply chain solutions offered in our global brands and retail direct channels. Our DTG2Go print-on-demand business continues to grow, with a strong double-digit sales increase on the year, and order flow for our digital first strategy exceeds our current capacity. We remain extremely focused on increasing output to meet demand in this important growth area.
"The Salt Life brand’s ability to connect with consumers across its many marketing touchpoints led to organic growth in all three Salt Life omni-channel markets – wholesale, retail and e-commerce – in the fourth quarter," concluded Humphreys.
Founded in 1999, Delta Apparel is the owner of DTG2Go, Salt Life and M.J. Soffe subsidiaries which operate the company's primary brands of Salt Life, Soffe, and Delta.
It also a direct-to-garment digital print and fulfillment company and sells casual and athletic products through a variety of distribution channels, including outdoor and sporting goods retailers, independent and specialty stores, department stores and mid-tier retailers, mass merchants and e-retailers, the U.S. military, and through its business-to-business e-commerce sites.
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