News April 21, 2021
Delta Apparel Says Sales Rose
The Top 40 supplier reported preliminary results that show a 12% year-over-year increase in its fiscal Q2 sales.
Top 40 promo products supplier Delta Apparel (asi/49172) says preliminary results show it had a strong second quarter of fiscal year 2021.
The Greenville, SC-based company reported that total company net sales for the quarter, which ran from January through April 3, corresponding closely to the calendar year’s first quarter, reached approximately $108 million. That’s up 12% from the prior fiscal year’s Q2, the company said. The tally represents revenue from all Delta Apparel’s business divisions, including but not limited to sales to the promotional products industry.
“The second quarter double-digit sales growth in both the Delta Group and Salt Life Group segments, coupled with margin expansion and controlled spending, is expected to result in operating income more than double the prior year March quarter, and diluted earnings per share in the range of $0.58 to $0.60 compared to $0.19 in the prior year period,” Delta Apparel said in a statement.
Delta Apparel, which operates a vertically integrated business model, said its activewear business had an outstanding quarter, being led by more than 40% year-over-year growth in its FunTees business shipping to major brands and retailers. The company’s DTG2Go digital business lumbered initially, but then picked up steam, with double-digit unit growth during the March period and the launch of several new customers during the month.
Flagship brand Salt Life saw sales growth of 175% at the company’s branded retail stores and 40% at its e-commerce site. “We are entering the season with the largest wholesale order book on record for Salt Life, showing the continued strength of the brand at retail,” said Delta Apparel CEO Robert W. Humphreys.
Delta Apparel expects to report full financial results for the quarter on Thursday, May 6. With reported 2019 North American promotional products revenue of $46.2 million, Delta Apparel ranked 38th on Counselor’s most recent list of the largest suppliers in the industry. The new rankings, based on 2020 performance, are due out in July 2021.