Delta Apparel Announces Quarterly Financials
Basic Undecorated T-Shirt Sales Weak
Greenville, SC-based apparel supplier Delta Apparel (asi/49172) announced last week that its revenues in its most recent quarter fell by 6.4%. The company said that it recorded net sales of $100 million in its fiscal 2014 first quarter, ended December 28, 2013, compared to revenues of $106.8 million in the same time period a year ago.
In its public filing, the company said that it was impacted in its most recent quarter by falling sales of basic undecorated t-shirts. “The weak demand for basic undecorated tees experienced during most of the quarter began improving toward the end of December,” said Robert W. Humphreys, Delta Apparel’s CEO.
Humphreys also noted that the company has a cautiously optimistic outlook for its business. “We are seeing many positive things in our business,” he said. “During the first quarter we started production on the new equipment installed as part of our manufacturing expansion, which should provide us capacity for future growth while lowering the cost on the incremental production.”
Humphreys, though, tempered the enthusiasm a bit because of the forecast for what could be the rising price of cotton in the coming quarters. “We have many reasons to be optimistic about our business, but we believe our optimism must be tempered by certain risks that are in the marketplace,” he said. “In recent weeks, speculation in commodities markets has caused cotton prices to rise significantly. It is still too soon to know if selling prices will reflect these higher raw material costs or what the potential impact on unit volumes may be.”