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Retail-ready segment sales up at Delta Apparel
23 Aug '10
5 min read
The revenue increase was volume driven from increased unit sales of catalog products. Gross margins in the activewear segment were 12.2% in the fourth quarter and 10.7% for the full fiscal year.
The activewear segment returned to profitability in the third fiscal quarter of 2010 and reported operating income of $2.7 million in the fourth fiscal quarter. Operating income was $2.4 million in fiscal year 2010, an improvement of $7.8 million from the operating loss of $5.4 million in fiscal year 2009.
Fiscal 2011 Guidance
The Company reiterates its fiscal year 2011 outlook for sales and earnings. For the fiscal year ending July 2, 2011, the Company still expects net sales to be in the range of $455 to $465 million and earnings to be in the range of $1.55 to $1.70 per diluted share.
The sales outlook for fiscal 2011 includes anticipated organic growth of approximately 5% after adjusting for one less week in fiscal 2011, and approximately $25 million in additional revenues from The Cotton Exchange, which we recently acquired.
The Company remains concerned about the challenging economic conditions which continue to impact consumer demand for apparel.
In addition, volatile cotton prices, global yarn shortages and limited capacities in cargo freight have created further short-term challenges in the apparel marketplace. In determining its expectations for the upcoming year, the Company believes it has taken into consideration these heightened risk factors.
Mr. Humphreys concluded, “We reached many milestones during fiscal year 2010 and are excited about the opportunities we have as fiscal year 2011 begins. We have completed several strategic marketing and operational initiatives that we believe position us for continued organic growth.
“In addition, the recent acquisition of The Cotton Exchange should allow us to expand our collegiate and licensed offerings to new and existing customers in the bookstore, retail and military markets. Although the apparel marketplace remains very difficult, we believe we are positioned to continue our trends of sales and earnings growth which should build greater value for our shareholders in the future.”
The activewear segment returned to profitability in the third fiscal quarter of 2010 and reported operating income of $2.7 million in the fourth fiscal quarter. Operating income was $2.4 million in fiscal year 2010, an improvement of $7.8 million from the operating loss of $5.4 million in fiscal year 2009.
Fiscal 2011 Guidance
The Company reiterates its fiscal year 2011 outlook for sales and earnings. For the fiscal year ending July 2, 2011, the Company still expects net sales to be in the range of $455 to $465 million and earnings to be in the range of $1.55 to $1.70 per diluted share.
The sales outlook for fiscal 2011 includes anticipated organic growth of approximately 5% after adjusting for one less week in fiscal 2011, and approximately $25 million in additional revenues from The Cotton Exchange, which we recently acquired.
The Company remains concerned about the challenging economic conditions which continue to impact consumer demand for apparel.
In addition, volatile cotton prices, global yarn shortages and limited capacities in cargo freight have created further short-term challenges in the apparel marketplace. In determining its expectations for the upcoming year, the Company believes it has taken into consideration these heightened risk factors.
Mr. Humphreys concluded, “We reached many milestones during fiscal year 2010 and are excited about the opportunities we have as fiscal year 2011 begins. We have completed several strategic marketing and operational initiatives that we believe position us for continued organic growth.
“In addition, the recent acquisition of The Cotton Exchange should allow us to expand our collegiate and licensed offerings to new and existing customers in the bookstore, retail and military markets. Although the apparel marketplace remains very difficult, we believe we are positioned to continue our trends of sales and earnings growth which should build greater value for our shareholders in the future.”
Delta Apparel Inc
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