Home / Knowledge / News / Apparel/Garments / Delta Apparel Q2'FY14 net sales dip 5%
Delta Apparel Q2'FY14 net sales dip 5%
25
Apr '14
Delta Apparel, Inc. reported that for its fiscal 2014 second quarter ended March 29, 2014, net sales were $114.5 million versus $120.1 million for the comparable 2013 period. The 5% sales decline was due primarily to unseasonably cold weather throughout the country and the weak retail environment prevailing for most of the quarter. 
 
Selling, general and administrative expenses as a percentage of sales improved to 18.6% in the 2014 second quarter compared with 19.7% in the prior year period as a result of the cost reduction measures implemented during the last several quarters. Operating margins in the branded segment improved 160 basis points from the prior March quarter, but this improvement was more than offset by depressed margins in the basics segment from lower selling prices on basic undecorated tees coupled with higher raw material costs. 
 
This resulted in a net loss for the 2014 second quarter of $763 thousand, or $0.10 per diluted share, compared with net income for the prior year quarter of $1.6 million, or $0.19 per diluted share.
 
For the first six months of fiscal 2014, net sales were $214.5 million compared with $226.8 million in the prior year period. The Company experienced a net loss for the 2014 first six months of $2.4 million, or $0.30 per diluted share, compared with net income of $1.7 million, or $0.19 per diluted share, in the prior year period.
 
Basics Segment Review
Net sales for the basics segment were $64.1 million in the 2014 second quarter, a 5% decrease from $67.4 million in the prior year period. Private label sales were down 17% as some customers reduced shipments of products because of slowness at retail and changes in product strategy. 
 
Sales of catalog basic tees increased 2% based on a 7% increase in unit sales offset by a 5% decrease in average selling prices. Weak market conditions for undecorated tees resulted in significant price discounting and a shift in sales mix to drive volume growth. This, coupled with higher cotton costs, lowered operating margins in the basics segment by 370 basis points to 1.7% of sales in the 2014 second quarter.
 
Click here to view full results.
 

Delta Apparel

Must ReadView All

Textiles | On 27th Sep 2016

SASEC countries plan greater economic cooperation

The six member countries of the South Asia Sub-regional Economic...

Textiles | On 27th Sep 2016

CBEC unveils draft rules for registration under GST

The Central Board of Excise and Customs (CBEC) has unveiled draft...

Textiles | On 27th Sep 2016

Swedish researchers develop new circular textiles process

A partnership between government owned Fouriertransform and private...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

Claudia Kersten
Global Organic Textile Standard

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
September 2016

September 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search