DULUTH, Ga- Delta Apparel, Inc. (NYSE American : DLA), one of the leading providers of activewear and lifestyle apparel as well as on-demand digital printing strategies, has announced its financial results for fiscal year 2023’s second quarter. April 1, 2023.
Chairperson and chief executive officer Robert W. Humphreys Our second quarter results highlight the inherent advantages of our multi-market approach during unbalanced demand cycles. Our sales grew by double digits in three of our five marketing channels. We saw the strongest growth in areas where we offer ‘consumer ready products’ that are decorated directly to end users or close to point of sale.
Our Salt Life division continues to capitalize off the popularity of its lifestyle brands domestically as well as internationally. We achieved record sales during the first quarter. Salt Life’s growth included double-digit growth across its branded channels, including retail and eCommerce. It also saw healthy growth in wholesale. Salt Life expanded its license portfolio by announcing a new agreement in the multibillion-dollar market for home furnishings, which we expect will generate significant future royalties.
You can also find out more about us on our website. DTG2Go The business also maintained its strong growth trend in the first quarter with an increase of almost 20% on the topline compared to the year before. Digital print continues to have a long-term growth potential as traditional decorated apparel market players increasingly realize its advantages, including speed of delivery and cost-effectiveness. On-demand strategies reduce inventory costs, which is a benefit that’s even more evident in today’s high interest rate environment.
The fashion market continues to be dynamic. Delta Direct and Global Brands Retail Direct saw a double digit increase in sales during the quarter, despite the impact of the well-publicized inventory levels.
Mr. Humphreys “We are focused on managing our cash flow, reducing our inventory, and leveraging our many opportunities to offer ‘consumer-ready’ products with higher margins and faster turnaround. Implementing these initiatives, and clearing out the remaining high-priced cotton inventory from last year will help us achieve better operating results in the second half. We’ll also be able to take advantage of any accelerations in demand.
Second quarter results April 1, 2023:
Net sales $103,3 Million Comparing second quarter net revenue of 131.7 Million Dollars. Salt Life Group segment net sales grew over 16% to $ 19.0 million From the second quarter net sales of $14,6 Million. Net sales in Delta Group Segment $91.3 Million Compared to $115.3 million In the second quarter of the previous year.
The gross margin was 14.7%, compared with 25.5% the year before. This was due to production cuts to match output to market demand and inflationary costs for cotton and other raw materials.
Selling, general, and administrative expenses (SG&A) were 19.3 million dollars, or 17.5%, of sales compared to $9.7 Million, which was 15.0% of the sales in the second quarter of last year. The increase in SG&A as a percentage of sales was driven by the further expansion of Salt Life’s branded retail store footprint and the deleveraging effect of overall lower sales relative to the prior year period.
Operating income has declined from $14,3 MillionThe operating loss was. or 10.9%, or. $5.4 million, or (4,9%) of sales
The net income decreased from $10.1 MillionIf you want to know more about a specific topic, please click on the link. $1.44 Loss per share diluted, equal to Approximately $7.0 Million.$1.00) per diluted share.
Net Inventory as of April 1, 2023Was $243.2 MillionThe sequential decline of $15.7 million You can also find out more about us on our website. December 2022 There was an increase in the number of people who were able to access the internet on a daily basis. $55.5 Million You can also find out more about us on our website. March 2022. The decrease in December 2022 This was primarily due to efforts to control inventory levels by reducing production to match output to demand.
Total net debt includes capital lease financing as well as cash on hand. $194,3 Million As of April 1, 2023There is an increase in 9 1 Million dollars You can also find out more about us on our website. December 2022 The following are some examples of how to get started: $40.9 million You can also find out more about us on our website. March 2022. Cash available and cash on hand under the Company’s Terms of Business U.S. Revolving credit facility total $12.8 million As of April 1, 2023A decrease in $14 Million You can also find out more about us on our website. December 2022 The following are some examples of how to get started: $22.4 Million You can also find out more about us on our website. March 2022With the decline from December 2022 Investments in the business are primarily responsible for supporting working capital requirements.
The Company spent around Two Million Dollars Capital expenditures in the second quarter of 2009 compared to $10,5 Million The second quarter expenditures were primarily focused on Salt Life’s retail store builds-outs, facility, information technology, and manufacturing improvements.
Conference Call
After the close of the market May 4, 2023Results for the Company’s second quarter fiscal year ended 2023 April 1, 2023At the end of this year, a new version of the. 4:30 p.m. ETSenior management from the Company will be holding a conference call in order to discuss their financial results as well as business outlook. You can join the conference call by dialing (888) 886-7786. When calling from outside The United StatesPlease dial 416-764 8658. A live webcast of the conference call will be available at www.deltaapparelinc.com. Visit the website 15 minutes before the webcast to download the necessary software and register. The call can be re-played through June 4, 2023. For international callers, dial 412-317-66771. The replay access code is 06112508.
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Delta Apparel, Inc.The company and its operating subsidiaries DTG2Go, LLC, Salt Life, LLC. 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 the market leader in direct-to garment digital print and fulfillment, with proprietary technologies. DTG2Go Technology and innovation are brought to the customer supply chain. The Company is a specialist in casual and sports products, and sells them through various distribution channels. These include outdoor and sporting goods retailers as well as independent and specialty shops, mid-tier and better department stores, mass retailers and eRetailers. U.S. It also offers ecommerce services for business-to-business transactions. Direct-to-consumer products are available on www.saltlife.com, www.soffe.com, and www.deltaapparel.com. The company also has branded retail outlets. The Company has operations throughout The United States, Honduras, El Salvador. MexicoApproximately 7,000 employees work for the company worldwide. Additional information about the Company is available at www.deltaapparelinc.com.
Cautionary Note on Forward-looking Statements
This press release contains ‘forward-looking statements’ that are subject to risks and uncertainties. There are many factors that could cause the actual results of a project to differ from what was anticipated or forecasted. This includes, but is not limited to: U.S. The impact of changes in domestic and international economic conditions, as well as changes in government policies and social actions, on our operations, financial position, liquidity and capital investments; disruptions to our manufacturing and distribution operations Securities and Exchange Commission As updated in our subsequent Quarterly Reports on the Form 10-Q. Except as required by law Delta Apparel, Inc. Expressly disclaims the obligation to update any forward-looking statements in order to reflect new events, circumstances or other information that may have arisen since the date of this release.
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https://ir.deltaapparelinc.com/press-releases/detail/371/delta-apparel-reports-second-quarter-fiscal-2023-results
Contact Company:
Justin Grow 864-232-5200, ext. 6604
[email protected]
Investor Relations and Media contact:
ICR, Inc.
Investors:
Tom Filandro, 646-277-1235
Media:
Jessica Liddell, 203-682-8208
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Source: Delta Apparel, Inc.