Fourth quarter Delta Apparel net sales declined to 91.4 million dollars with Salt Life Group segment net sales decreasing to 12.5 million dollars and the Delta Group segment net sales to 78.9 million dollars.
Net sales for the full year decreased to 415.4 million dollars with Salt Life Group segment net sales declining to 59 million dollars and the Delta Group segment to 356.3 million dollars compared to the prior year.
Commenting on the company's financial performance, Delta Apparel chairman and CEO Robert Humphreys said: “Fiscal 2023 was undoubtedly a challenging year for our company and the industry given the reduced demand environment following last year’s post-pandemic seller’s market.”
Fourth quarter gross margins declined to 11.2 percent, operating loss was 17 million dollars or negative 18.6 percent of sales and net income declined to a loss of 16.4 million dollars or 2.34 dollars loss per share, while adjusted fourth quarter net loss was 5 million dollars or 72 cents per share.
Full year gross margins declined to 13 percent, operating loss was 29.4 million dollars or 7.1 percent of sales, while net loss was 33.2 million dollars or 4.75 dollars loss per share and adjusted net income was 3.3 million dollars or 47 cents per diluted share.
“We currently expect to finish fiscal year 2024 with net sales in a range of 400 to 415 million dollars generating operating profit margins of approximately 2 percent to 3.5 percent, with sequentially improving margins as well as top line growth in the back half of the year,” added Humphreys.