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Delta Apparel Q2 earnings match estimates

By Prachi Singh

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Business |REPORT

Announcing its preliminary financial results for the second quarter ended April 2, 2016, Delta Apparel has said that overall gross margins continued to expand during the quarter due to positive growth in the company’s higher margin businesses. This drove earnings per diluted share into an expected range of 0.40 dollar to 0.43 dollar compared to 0.03 dollar in the prior year quarter, after adjusting for the 0.43 dollar per share gain on the sale of The Game business.

Commenting on the update, Robert W. Humphreys, Delta Apparel’s Chairman and CEO said, “We are pleased with the performance of the business in the first half of this fiscal year, with expected earnings of 0.49 dollar to 0.52 dollar per share compared to a loss of 0.50 dollar in the prior year first half. We saw strong second quarter sales growth in areas of key focus for us, including Salt Life, ecommerce, fashion basics, and catalog full-package programs. ”

The company added that net sales were impacted to some degree by the bankruptcy of a large retail customer and are expected to come in at 109.2 million dollars. Sales in the prior year quarter were 109.6 million dollars after adjusting for 5.4 million dollars of sales in the since-divested The Game business and sales of products under the Kentucky Derby license that it did not seek to renew for 2016.

picture:deltaapparelinc.com

Delta Apparel