Delta Apparel reports decline in Q4 sales

Delta Apparel has said in its preliminary financial results announcement for the fourth quarter ended October 1, 2016 that all of the company’s businesses, with the exception of Junkfood, experienced sales growth during the quarter. The company’s sales for the 13-week fourth quarter were 114.4 million dollars compared to 120.2 million dollars in the prior year 14-week fourth quarter. Adjusting for the additional week in the prior year, Delta Apparel said, net sales increased by 2.5 percent.

In the company announcement, Robert W. Humphreys, Delta Apparel’s Chairman and CEO, said, “We’ve had a very exciting, busy and productive quarter that, as you will see in our full results, gave us a solid finish to our fiscal year 2016. We saw double-digit sales growth in our Salt Life and Art Gun businesses, and mid-single digit sales growth in our activewear business. Soffe experienced solid growth for the quarter as well.”

Highlights of the fourth quarter performance

The company also said that it completed the manufacturing realignment during the quarter as planned and at a slightly lower cost than originally expected. After adjusting for the impact of the manufacturing realignment, earnings per diluted share are expected to be in the range of 0.38 dollar to 0.40 dollar, compared with 0.53 dollar per share in the prior year quarter.

While operating margins were on par with the previous year; the company said, lack of an extra week of sales coupled with the unfavourable impact of tax expense in this year’s quarter compared to a tax benefit in the prior year period, lowered diluted earnings by approximately 0.15 dollar per share.

“We fully implemented our manufacturing realignment during the quarter at a cost that was about 0.01 dollar per share less than anticipated. We are pleased that we were able to complete the sale of the real estate and equipment associated with our Maiden, North Carolina textile facility. New equipment is installed and running at our Honduran textile facility and we are rapidly approaching our output goals. Our activities throughout fiscal 2016, and particularly in our fourth quarter, give us good momentum and a strong foundation for growth and profitability in fiscal 2017,” added Humphreys.

Picture:Soffe