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Delta Apparel achieves organic sales growth in each unit
17 Aug '09
5 min read
Activewear Apparel
The activewear segment, comprised of the Delta and FunTees businesses, reported sales of $54.8 million for the three months ended June 27, 2009, a decrease of 1.7% compared to the prior year fourth quarter. Sales in the FunTees business increased 17.5%, driven principally from increased full-package programs with existing customers. Sales of the Delta basic tees decreased 10.2% during the fourth quarter primarily from lower average prices on basic tees. Unit sales in the Delta business declined 3.4% with average selling prices down approximately 7%. The activewear segment had an operating loss of $0.5 million for the fourth quarter of 2009, compared to an operating loss of $1.8 million in the prior year fourth quarter. The improved results were due primarily to improved manufacturing costs and lower raw material and transportation expenses.
Fiscal 2010 Guidance
For the 2010 fiscal year ending July 3, 2010, the Company expects net sales to be in the range of $360 to $380 million and earnings to be in the range of $0.80 to $1.00 per diluted share. This compares to fiscal year 2009 sales of $355.2 million and earnings of $0.76 per diluted share.
The Company remains concerned about the U.S. economy and slowing consumer demand for apparel. In determining its expectations for the upcoming year, the Company believes it has taken into consideration the heightened risk factors associated with the current economic climate; however, significant further deterioration in the economy may negatively
impact the Company's ability to achieve its expectations.
Mr. Humphreys concluded, “As fiscal year 2010 begins, we are excited about the future of Delta Apparel, Inc. During fiscal year 2009 we completed several strategic marketing and operational initiatives that drove organic growth and improved profitability. Through fiscal year 2010 we will continue to focus on maximizing our operating performance in all key areas of our business. We are optimistic about our growth opportunities for 2010 and believe our initiatives will continue to build greater value for our shareholders in the future.”
The activewear segment, comprised of the Delta and FunTees businesses, reported sales of $54.8 million for the three months ended June 27, 2009, a decrease of 1.7% compared to the prior year fourth quarter. Sales in the FunTees business increased 17.5%, driven principally from increased full-package programs with existing customers. Sales of the Delta basic tees decreased 10.2% during the fourth quarter primarily from lower average prices on basic tees. Unit sales in the Delta business declined 3.4% with average selling prices down approximately 7%. The activewear segment had an operating loss of $0.5 million for the fourth quarter of 2009, compared to an operating loss of $1.8 million in the prior year fourth quarter. The improved results were due primarily to improved manufacturing costs and lower raw material and transportation expenses.
Fiscal 2010 Guidance
For the 2010 fiscal year ending July 3, 2010, the Company expects net sales to be in the range of $360 to $380 million and earnings to be in the range of $0.80 to $1.00 per diluted share. This compares to fiscal year 2009 sales of $355.2 million and earnings of $0.76 per diluted share.
The Company remains concerned about the U.S. economy and slowing consumer demand for apparel. In determining its expectations for the upcoming year, the Company believes it has taken into consideration the heightened risk factors associated with the current economic climate; however, significant further deterioration in the economy may negatively
impact the Company's ability to achieve its expectations.
Mr. Humphreys concluded, “As fiscal year 2010 begins, we are excited about the future of Delta Apparel, Inc. During fiscal year 2009 we completed several strategic marketing and operational initiatives that drove organic growth and improved profitability. Through fiscal year 2010 we will continue to focus on maximizing our operating performance in all key areas of our business. We are optimistic about our growth opportunities for 2010 and believe our initiatives will continue to build greater value for our shareholders in the future.”
Delta Apparel Inc
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