Net sales for the fiscal 2013 first quarter were $130.1 million, a 5.3 percent increase over 2012 first quarter sales of $123.5 million. Net income for the 2013 first quarter was $3.6 million, or $0.41 per diluted share, compared with $4.4 million, or $0.50 per diluted share, in the prior year quarter.
Net income for the fiscal 2013 first quarter was affected by a one-time charge of $1.2 million related to the previously disclosed internal investigation completed by the Company's Audit Committee in September, which reduced first quarter earnings per share by $0.10. Excluding this one-time charge, net income would have been a first quarter record.
Delta’s first quarter performance was primarily driven by strong organic growth and improved margins in the basics segment as well as in the branded segment’s Art Gun business. The higher revenues were offset somewhat by lower average selling prices resulting from cotton price declines and product mix changes.
Basics Segment Review
Fiscal 2013 first-quarter net sales for Delta’s basics segment rose 26.6 percent to $66.5 million, compared with $52.6 million in the prior year period. The increase was led by the Company’s FunTees business, which enjoyed a 48 percent rise in unit volume and 41.5 percent net sales growth during the quarter.
The Delta Catalog business experienced a 35 percent increase in unit volume and 20 percent net sales growth. The higher unit volumes leveraged against fixed manufacturing costs, coupled with lower cotton costs in inventory, enabled Delta to reduce pricing while maintaining acceptable margins in its basics segment. In addition, the market for undecorated t-shirts was stable during the first quarter, with overall market demand keeping pace with inventories.
Branded Segment Review
Branded segment sales for the fiscal 2013 first quarter were $63.5 million, versus $70.9 million for the comparable 2012 quarter. The shortfall primarily resulted from lower net sales in the Soffe, Junkfood and The Game businesses, which were only slightly offset by sales growth at Art Gun. Soffe’s revenue was down due to weak department store business with low replenishment orders, but Soffe did experience solid growth in the military and sporting goods channels.
The decline in Junkfood sales was primarily driven by product mix changes and early shipping of fall merchandise. However, that business did see growth in its core Junk Food brand within the boutique, specialty chain and high-end department store channels and maintained strong margins during the quarter. Slower sales in collegiate products lead to The Game's revenue decline for the quarter, but solid growth in its Salt Life and motorsports lines is anticipated for the remainder of the year. Art Gun followed its strong showing over the past several quarters with a net sales increase of nearly 230 percent over last year’s first quarter.
Textiles | On 28th Jun 2016
Indian textile and apparel industry has the potential to create over...
Textiles | On 28th Jun 2016
The Telangana government has decided to give Rs 2 per unit subsidy on ...
‘Buying crowdsourced or creative designs are much more appealing to the...
‘Sustainable fashion is trending upwards, slowly but surely, as people...
‘It is going to take some time for Indian buyers to get accustomed to...
Biovation II LLC
Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...
Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
"Now we can see the Russian trend in international fashion. And Russian...
"You have to truly understand what your client wants, know her needs, what ...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...