Delta Apparel Inc., a provider of core activewear and lifestyle apparel products, said it expects overall net sales for its fiscal fourth quarter ended Oct. 2 to total approximately $114 million, an increase of about 6 percent over last year’s fourth quarter sales.
Earnings for the period are anticipated in the range of 91 cents to 94 cent per diluted share. Excluding a valuation gain on contingent consideration, the company said Wednesday that it expects fourth quarter diluted earnings per share (EPS) growth of more than 20 percent compared to the prior-year period.
“In what remained a highly fluid period for our industry with many cross currents, we are extraordinarily proud of the strong finish to our 2021 fiscal year,” Robert W. Humphreys, chairman and CEO of Delta Apparel, said. “The fourth quarter performance is a testament to the strength of our strategic model to service diversified sales channels utilizing our unique and flexible integrated manufacturing platform and broad geographic distribution network.”
Delta Apparel, along with its operating subsidiaries, DTG2Go, Salt Life and M.J. Soffe, LLC, is a vertically integrated, international apparel company that designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life, Soffe and Delta. The company is a market leader in the direct-to-garment digital print and fulfillment industry, bringing DTG2Go technology and innovation to the supply chain of its customers.
Humphreys said Delta Group sales increased 5 percent as the custom and retail-direct business remained strong with brands and retailers seeing the advantages of its near-shore manufacturing and sourcing network. Delta Apparel’s operations are located throughout the United States, Honduras, El Salvador and Mexico, and it employs approximately 8,700 people worldwide.
“While our Delta catalog growth was constrained, particularly at the beginning of the quarter, from suboptimal inventory levels, our record-level manufacturing output allowed us to rebuild inventory as the quarter progressed,” he said. “We expect this will continue through the first half of fiscal year 2022, positioning us for a strong spring selling season.”
The Salt Life brand posted double-digit growth during the quarter in its retail doors and in the wholesale channel. The company recently announced the opening of five Salt Life stores in Florida, South Carolina and Alabama. Humphreys said the store openings are expected early next year “as we gear up to meet the continued strong demand for the brand.”
Delta Apparel expects net sales for fiscal 2021 to be approximately $436 million, an increase of about 14 percent from the prior year. Diluted EPS for fiscal 2021 are anticipated to be in range of $2.81 to $2.84.
Final and complete financial results for the fiscal year 2021 fourth quarter ended Oct. 2 will be released after the market closes on Nov. 18.