Delta Apparel Reports Year-End Financials

Supplier firm Delta Apparel (asi/49172) announced this week that it achieved sales growth of 12.7% in its fiscal fourth quarter of 2015 and a 2.5% increase in sales during its full-year fiscal 2015. Further, the company’s operating profit for fiscal 2015 was $16.1 million compared to an operating loss of $1.7 million in the prior year. And, net income was $8.1 million compared with a net loss of $960,000 in 2014.

“We saw net sales growth in the third and fourth quarters and gross margins expanded sequentially through the year and year-over-year,” said Robert W. Humphreys, Delta’s chairman and chief executive officer. “Simply put, we have transformed Delta Apparel into a company that can grow profitably even in difficult retail environments.”

Delta also reported that net sales in its basics segment grew 21.1% in the fiscal 2015 fourth quarter, to $74.4 million, compared with $61.4 million in the prior year period. Also, activewear sales increased by 19.6%, driven mostly by a 46% increase in private-label sales. The company said that new products such as fleece, Delta-Dri and snow heathers, as well as solid increases in “full package” programs, drove catalog growth during the quarter.

Humphreys partially attributed the company’s growth in private-label sales to an expansion of its screen-printing operation in El Salvador and said the moves in that segment have set up the company for future growth despite continued declines in retail sales.

“Looking ahead, we believe there will be a continuation of the soft retail environment but, regardless, we believe we are positioned to further improve our operating results in 2016,” he said. “We are excited about introducing new performance and lifestyle products across our business units for Spring that we believe will enhance our current offerings to consumers. These steps give us encouragement that we should see another year of sales growth and profit improvement for Delta Apparel in fiscal year 2016.”