Delta Apparel announces 65% third quarter sales growth
July 15, 2021
Diluted EPS Expected to Reach Over $0.90, or 50% Above Fiscal 2019 Third Quarter
GREENVILLE, SC – Delta Apparel, Inc. (NYSE American: DLA), a leading provider of core activewear and lifestyle apparel products, today announced preliminary sales and operating results for its 2021 fiscal third quarter ended July 3, 2021 (the “June” quarter).
The Company expects net sales for its June quarter to be approximately $118 million, representing 65% growth compared to the prior year and coming in roughly flat to the third quarter of fiscal 2019. The stronger than anticipated sales performance reflected exceedingly strong Salt Life Group revenue across all sales channels. In particular, direct-to-consumer sales grew in excess of 150% compared to the third quarter of fiscal 2019. Delta Activewear also outperformed sales expectations, with strong demand from retail license and brand direct customers. The favorable mix of higher margin, direct-to-consumer revenue combined with the benefit of lower product costs still flowing through cost of sales, drove gross margin improvement of over 200 basis points from the March quarter. Stronger sales, higher gross margins and continued leverage of general and administrative expenses is expected to result in earnings of over $0.90 per diluted share for the Company’s fiscal 2021 June quarter.
Robert W. Humphreys, the Company’s Chairman and Chief Executive Officer, commented, “Our June quarter performance is a true testament to the power of our diversified business model. The strong emotional connection to our Salt Life lifestyle brand drove robust consumer engagement that far exceeded our expectations and further validated our belief in this aspirational brand. As we announced last week, we are opening two new retail doors: one in Myrtle Beach, South Carolina, and one in Galveston, our first store in the state of Texas. With twelve Salt Life stores already opened, we have proven the success of this omni-channel shopping experience for consumers. We now plan to accelerate our investments in this key sales channel, and look to further expand the Salt Life brand reach with at least five additional retail locations in 2022.”
– BUSINESS WIRE
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®, COAST®, Soffe®, and Delta. The Company is a market leader in the on-demand, digital print and fulfillment industry, bringing DTG2Go’s proprietary technology and innovation to the supply chain of its customers. 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 digital platform. The Company’s products are also made available direct-to-consumer on its ecommerce sites at www.saltlife.com, www.coastapparel.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 7,900 people worldwide. Additional information about the Company is available at www.deltaapparelinc.com.
