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Delta Apparel swings to Q2 loss

By Huw Hughes


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Image: Delta Apparel, Facebook

US lifestyle and activewear company Delta Apparel swung to a loss in the second quarter as its sales fell 16.2 percent.

The company made a net loss of 7 million dollars in the three months to April 1 from a profit of 10.1 million dollars a year earlier.

That came as its Q2 sales fell to 110.3 million dollars from 131.7 million dollars, with a 16 percent increase in its Salt Life segment offset by a 20.8 percent decrease in its Delta Group segment.

“The apparel markets remain dynamic,” Delta Apparel chair and CEO Robert W. Humphreys said in a statement.

He continued: “As expected, our Delta Direct and Global Brands channels were impacted by the well-publicized high inventory levels and associated slower demand in the supply chains they serve, while our Retail Direct channel saw double-digit sales growth in the quarter.”

Looking ahead, Humphreys said: “We remain keenly focused on managing our working capital, reducing inventory and debt levels, and leveraging the many opportunities across our business to provide higher-margin and quicker-turn ‘consumer ready’ products.

“Executing on these initiatives and working through the remainder of last year’s high-price cotton inventory sets the stage for improved operating results as we move through the second half of our fiscal year and positions us to capitalize on accelerations in demand.”

Delta Apparel
Salt Life