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Georgia-based apparel company sees loss for third quarter
11 Apr '08
4 min read
While the sell-through of our Soffe product line remains solid across its channels of distribution, several retailers have been more conservative with their level of reorders compared with previous seasons due to the overall softness in consumer spending.
Our Junkfood business continues to grow within its traditional market of boutiques, high-end department stores and foreign customers.
Our partnership with GapKids is expanding with shipments to more doors. In April we expect to ship our first orders to BabyGap and have additional joint-branded Junkfood/Gap marketing initiatives planned.”
Mr. Humphreys continued, “In our activewear segment we are also seeing our customers take a more cautious approach with their orders due to weakness in consumer spending and a slowdown in the release of orders from retailers.
While pricing is moving up on basic tees, these increases are being offset by higher cotton, energy and transportation costs.
We are satisfied that our new Honduran textile facility is on-track with its production levels and expect the savings from this facility will improve our results as we begin our new fiscal year.”
For fiscal 2008, revenues are now expected to range from $305 million to $315 million with diluted loss per share from ($0.16) to ($0.10), inclusive of approximately $0.39 per share of textile restructuring related charges.
The Company remains concerned about the general slowdown of the U.S. economy and consumer demand for apparel. Further deterioration in the economy and retail marketplace may negatively impact the Company's results of operations.
Mr. Humphreys concluded, “Despite our revised outlook for 2008, we are completing a number of initiatives that we believe will improve the long-term prospects for our business.
We remain committed to executing our strategy, which we believe will allow us to deliver top-line growth, improve profitability, and increase shareholder value in the future.”
The Company will report fiscal 2008 third quarter results on Friday, April 25, 2008 before the market opens. The Company will also hold a conference call with senior management to discuss the financial results at 9:00 a.m. ET on April 25, 2008.
Our Junkfood business continues to grow within its traditional market of boutiques, high-end department stores and foreign customers.
Our partnership with GapKids is expanding with shipments to more doors. In April we expect to ship our first orders to BabyGap and have additional joint-branded Junkfood/Gap marketing initiatives planned.”
Mr. Humphreys continued, “In our activewear segment we are also seeing our customers take a more cautious approach with their orders due to weakness in consumer spending and a slowdown in the release of orders from retailers.
While pricing is moving up on basic tees, these increases are being offset by higher cotton, energy and transportation costs.
We are satisfied that our new Honduran textile facility is on-track with its production levels and expect the savings from this facility will improve our results as we begin our new fiscal year.”
For fiscal 2008, revenues are now expected to range from $305 million to $315 million with diluted loss per share from ($0.16) to ($0.10), inclusive of approximately $0.39 per share of textile restructuring related charges.
The Company remains concerned about the general slowdown of the U.S. economy and consumer demand for apparel. Further deterioration in the economy and retail marketplace may negatively impact the Company's results of operations.
Mr. Humphreys concluded, “Despite our revised outlook for 2008, we are completing a number of initiatives that we believe will improve the long-term prospects for our business.
We remain committed to executing our strategy, which we believe will allow us to deliver top-line growth, improve profitability, and increase shareholder value in the future.”
The Company will report fiscal 2008 third quarter results on Friday, April 25, 2008 before the market opens. The Company will also hold a conference call with senior management to discuss the financial results at 9:00 a.m. ET on April 25, 2008.
Delta Apparel Inc
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