Delta Apparel’s Salt Life segment grows sales by 17 percent in Q1

Delta Apparel, Inc. reported first quarter net sales of 107.3 million dollars compared to prior year first quarter net sales of 110.7 million dollars.

Net sales in the Delta Group segment were 97 million dollars compared to 101.9 million dollars in the prior year first quarter.

Salt Life Group segment net sales grew 17 percent to 10.3 million dollars from prior year first quarter net sales of 8.8 million dollars.

Commenting on the results, the company’s chairman and chief executive officer Robert W. Humphreys said: “We were pleased to deliver double-digit sales growth across four of our five main go-to-market channels and overall sales of 107 million dollars for the quarter. Our Salt Life Group segment hit on all cylinders, delivering record first quarter sales fueled by 17 percent growth over last year and strong acceleration across direct-to-consumer and wholesale channels.”

The company’s gross margins for the quarter were 12.7 percent compared to 20.8 percent in the prior year.

Operating income declined year-over-year from 5.9 million dollars or 5.3 percent of sales to an operating loss of 2.59 million dollars or negative 2.4 percent of sales.

Net income declined from 3.6 million dollars or 51 cents per diluted share to a loss of 3.6 million dollars or 51 cents loss per diluted share, and included a one-time 2.5 million dollars benefit from the settlement of a litigation matter.

“Moving forward, we look for another record year at Salt Life, continued sales growth at DTG2Go, and improving profitability at activewear in the second half of our fiscal year,” Humphreys added.