Delta Apparel strong Q3 boosted by Salt Life, DTG2Go sales
Delta Apparel Inc. on Wednesday reported a 6.3 percent sales increasw for the third quarter, on the back of double-digit sales growth at its Salt Life Group segment and strong growth at its DTG2Go digital print business.
For the third quarter ended June 29, net sales totaled $119.3 million, up from $112.2 million in the prior year third quarter. Net sales in the Delta Group segment increased 5 percent over the prior year period, while net sales in the Salt Life Group segment soared 18 percent.
“Our team delivered a strong quarter with accelerated sales growth and profitability, and we are pleased with the performance across both our Delta Group and Salt Life Group segments," said Robert Humphreys, chairman and CEO, in a news statement.
Likewise, the company’s fast-growing digital print business continues to be a bright spot for the Greenville, South Carolina-based company.
“Our DTG2Go digital print business continues to grow rapidly and our investments in that area are allowing us to capitalize on the disruption digital print technology is driving on graphic tees. Our Salt Life business also executed a great quarter, with strong performance across all of its major sales channels. We continue to be encouraged by the apparel growth we are seeing with regional and national retailers across multiple geographies.”
Net income for the quarter was $4.9 million, or $0.70 per diluted share, compared to the prior year period of $4.6 million, or $0.62 per diluted share.
For the nine months ended June 29, net sales were $323.8 million, up 7 percent from $302.5 million in the comparable period last year.
Earlier this month, Delta Apparel announced the opening of two new facilities - one in the Dallas, Texas area and one in Cranbury, New Jersey - as part of its digital print subsidiary, DTG2Go.
“The successes we are seeing across our business validate our focus on expanding our go-to-market strategies and sales channels as well as investing in manufacturing technology and distribution speed. We look forward to closing our fiscal year with more positive momentum,” concluded Humphreys.
Delta Apparel currently operates a nationwide print and fulfillment network in Miami and Clearwater, Florida; Reno, Nevada; Storm Lake, Iowa; and Fayetteville, North Carolina.
DTG2Go also ships internationally to over 100 countries worldwide.
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