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Delta Apparel Reports Preliminary First Quarter Sales Results
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Delta Apparel, Inc. (NYSE American: DLA) announced preliminary sales results for Q1 2023, forecasting net sales of approximately $106 million. The Salt Life Group segment experienced a robust 17% growth, driven by double-digit increases in direct-to-consumer retail and eCommerce. The DTG2Go segment led with a 20% growth year-over-year. However, a decline was noted in the Delta Direct channel due to market conditions.
CEO Robert W. Humphreys emphasized the company's resilience despite demand-related challenges in mass retail.
Positive
Expected Q1 2023 net sales around $106 million.
17% sales growth in the Salt Life Group segment.
Double-digit growth in direct-to-consumer retail and eCommerce channels.
20% growth in the DTG2Go segment year-over-year.
Global Brands and Retail Direct channels achieved double-digit sales growth.
Negative
Decline in Delta Direct channel sales due to market conditions.
Double-Digit Growth Expected Across Majority of Go-To-Market Channels
Company to Present at ICR Conference 2023
DULUTH, Ga.--(BUSINESS WIRE)--
Delta Apparel, Inc. (NYSE American: DLA), a leading provider of core activewear, lifestyle apparel, and direct-to-garment digital print and fulfillment strategies, today announced preliminary sales results for its 2023 fiscal first quarter ended December 31, 2022.
The Company expects overall first quarter net sales of approximately $106 million, highlighted by 17% sales growth in the Salt Life Group segment, including double-digit growth across its direct-to-consumer retail and eCommerce channels combined with continued growth in its wholesale customer base. The Delta Group segment was led by 20% growth at DTG2Go over the prior year first quarter. Although the Company did experience an anticipated sales decline in its Delta Direct channel due to market conditions, its Global Brands and Retail Direct channels both achieved double-digit sales growth for the quarter.
Robert W. Humphreys, the Company’s Chairman and Chief Executive Officer, commented, “The top-line performance we delivered this quarter showcases the inherent resiliency of our business model and the strength we saw in the majority of our sales channels allowed us to overcome some demand-related headwinds in the mass retail channel.”
As previously announced, the Company will host a “fireside chat” on Monday, January 9, 2023, at 10:00 a.m. Eastern Time, at the ICR Conference 2023 being held at the Grande Lakes Resort in Orlando, Florida. A webcast of the fireside chat will be available on Delta Apparel's website at www.deltaapparelinc.com. Real Player or Windows Media Player is required to listen to the webcast.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating subsidiaries DTG2Go, LLC, Salt Life, LLC, and M.J. Soffe, LLC, is a vertically-integrated, international apparel company that designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life®, Soffe®, and Delta. The Company is a market leader in the direct-to-garment digital print and fulfillment industry, bringing proprietary DTG2Go technology and innovation to customer supply chains. The Company specializes in selling casual and athletic products through a variety of distribution channels and tiers, including outdoor and sporting goods retailers, independent and specialty stores, better department stores and mid-tier retailers, mass merchants and e-retailers, the U.S. military, and through its business-to-business e-commerce sites. The Company’s products are also made available direct-to-consumer on its websites at www.saltlife.com, www.soffe.com and www.deltaapparel.com as well as through its branded retail stores. The Company’s operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 8,600 people worldwide. Additional information about the Company is available at www.deltaapparelinc.com.
This press release may contain “forward-looking” statements that involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the general U.S. and international economic conditions; the impact of the COVID-19 pandemic and government/social actions taken to contain its spread on our operations, financial condition, liquidity, and capital investments, including recent labor shortages, inventory constraints, and supply chain disruptions; significant interruptions or disruptions within our manufacturing, distribution or other operations; deterioration in the financial condition of our customers and suppliers and changes in the operations and strategies of our customers and suppliers; the volatility and uncertainty of cotton and other raw material prices and availability; the competitive conditions in the apparel industry; our ability to predict or react to changing consumer preferences or trends; our ability to successfully open and operate new retail stores in a timely and cost-effective manner; the ability to grow, achieve synergies and realize the expected profitability of acquisitions; changes in economic, political or social stability at our offshore locations or in areas in which we, or our suppliers or vendors, operate; our ability to attract and retain key management; the volatility and uncertainty of energy, fuel and related costs; material disruptions in our information systems related to our business operations; compromises of our data security; significant changes in our effective tax rate; significant litigation in either domestic or international jurisdictions; recalls, claims and negative publicity associated with product liability issues; the ability to protect our trademarks and other intellectual property; changes in international trade regulations; our ability to comply with trade regulations; changes in employment laws or regulations or our relationship with employees; negative publicity resulting from violations of manufacturing standards or labor laws or unethical business practices by our suppliers and independent contractors; the inability of suppliers or other third-parties, including those related to transportation, to fulfill the terms of their contracts with us; restrictions on our ability to borrow capital or service our indebtedness; interest rate fluctuations increasing our obligations under our variable rate indebtedness; the ability to raise additional capital; the impairment of acquired intangible assets; foreign currency exchange rate fluctuations; the illiquidity of our shares; price volatility in our shares and the general volatility of the stock market; and the other factors set forth in the "Risk Factors" contained in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and as updated in our subsequently filed Quarterly Reports on Form 10-Q. Except as may be required by law, Delta Apparel, Inc. expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
