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Expanding Digital Print Unit, Delta Apparel’s Q4 Revenue Rises 8%

Delta Apparel Inc., a manufacturer of activewear and lifestyle apparel, announced preliminary results for its 2020 fiscal year fourth quarter, in which it anticipates overall net sales to rise around 8 percent to $116 million compared to the prior-year period.

Delta Apparel said it expects growth in each of its business units. The Delta Group and Salt Life Group segments are expected to report fourth-quarter year-over-year net sales growth of approximately 8 percent and 12 percent, respectively. The company also foresees reporting growth in operating income in the fourth quarter compared to prior year that exceeds previous forecasts.

“In what has remained an unprecedented period for our nation and our industry, we are proud of the strong finish to our 2020 fiscal year,” Robert W. Humphreys, the company’s chairman and CEO, said. “Our stellar preliminary fourth quarter sales results were broad-based with growth in each of our business units. The advantages of the Delta Apparel strategic model with our diversified sales channels and broad geographic footprint, combined with our…integrated manufacturing platform, once again contributed to remarkable results this quarter and positions us well for profitable growth into the foreseeable future.”

Humphreys said activewear sales are projected to increase more than 5 percent, as demand remained strong for Delta Catalog products.

“We were particularly pleased with our team’s ability to ramp-up manufacturing quicker than we originally expected to service our private label customers and replenish our catalog inventory levels, allowing growth in both of these channels within activewear,” he said. “Consumers continued to actively seek Salt Life and Soffe products across multiple distribution channels, with notable sales growth on our Soffe and Salt Life web sites of over 80 percent and 30 percent, respectively. The Salt Life branded retail stores produced sales growth of over 120 percent from the prior year, driven by same store sales growth combined with new door openings.”

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The company’s digital print business, DTG2Go, achieved net sales growth in the quarter of nearly 30 percent year to year. The company is expanding its DTG2Go digital print business with the opening of its first “On-Demand DC.” a solution for retailers and brands to grow their business utilizing an integrated, on-demand fulfillment model.

“Our DTG2Go business continued to disrupt the industry with our unique on-demand model utilizing our proprietary technology and broad geographic footprint,” Humphreys said. “Customers are seeing the benefits of the seamless supply chain of Delta garments within our on-demand model, with DTG2Go’s usage of Delta Catalog blanks jumping to a new record of approximately 40 percent utilization compared to 20 percent in last year’s fourth quarter and 30 percent during the June quarter. This trend is promising as it creates a more efficient operation, reduces garment costs for our customers and lowers working capital needs in the business.”

Final and complete financial results for the fiscal year 2020 fourth quarter ended Oct. 3 will be released after market close on Nov. 19. Delta Apparel operations are located in the U.S., Honduras, El Salvador and Mexico, employing approximately 8,700 people worldwide.