News May 09, 2024
Delta Apparel’s Sales Drop 27% in Fiscal Half-Year
The Top 40 firm also experienced steeper losses over the six-month period.
Top 40 supplier Delta Apparel’s (asi/49172) sales continued to plummet and its losses mounted during the first six months of its fiscal year, which concluded March 30, according to a financial report the company issued Wednesday, May 8.
The Duluth, GA-headquartered supplier said that its half-year total company revenue was about $158.9 million – a 27% year-over-year decrease. For the second quarter, which also ended with March, sales dropped about 28.5% to around $78.9 million. The figures account for sales across all of the publicly traded company’s channels, including the promotional products market, retail and others.
Revenue from Delta Apparel’s Delta Group segment, which includes but isn’t limited to business in the promotional products industry, retreated in the half-year and Q2 specifically as well. In the three-month second quarter period, the Delta Group division’s business eroded 30.5% on an annual basis to $63.4 million.
Delta Apparel opted not to hold a conference call to discuss its financial performance with investors. CEO Robert Humphreys did not issue a statement in conjunction with the earnings report. During discussion on its fiscal year Q1 performance earlier in 2024, the firm said that it has cut jobs and worked to reduce debt and overhead amid the sagging sales.
Meanwhile, the more recent report on the half-year/Q2 showed bottom-line struggles.
For the six-month period, Delta Apparel suffered a loss of about $44.8 million, or -$6.38 per share. That was worse than the prior year’s loss of $10.5 million, or -$1.51 per share, in the comparable period. For the current fiscal year Q2, loss was a little over $36 million, or -$5.15 per share – again, worse than the previous year’s second quarter losses.
In the 2023 fiscal year, which ended September 30, Delta Apparel had a $33.2 million annual loss and sales fell 14%.
Based on estimated 2022 North American promotional product revenue of $49.6 million, Delta Apparel ranked 37 on Counselor’s most recent list of the largest suppliers in the industry.