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Delta Apparel Q4 EPS rises, to open textile plant in Honduras
18 Aug '06
4 min read
Clothing maker Delta Apparel Inc reported financial results for its fourth fiscal quarter and fiscal year ended July 1st 2006.
The company's results for the fiscal 2006 fourth quarter and annual periods include the operations of Junkfood Clothing Company since its acquisition by the company on August 22nd 2005.
For the three months ended July 1st 2006, net sales were a record $82.5 million, an increase of 24.4%, compared to $66.3 million in the prior year's fourth quarter. Gross margins increased 340 basis points to 28.7% compared to 25.3% in the prior year fourth quarter.
For the year ended July 1st 2006, net sales increased 18.4% to a record $270.1 million compared to $228.1 million in the prior year. Gross margins improved 590 basis points to 29.6% compared to 23.6% in the prior year due to increased sales of the higher margin branded apparel products and improved manufacturing costs and lower raw material pricing, offset partially by higher energy and transportation costs.
Robert Humphreys, President and CEO, commented, "We ended our fiscal year with solid results, achieving record sales and record earnings for the year. In our Retail-Ready segment, Soffe achieved a 32.6% sales growth in the fourth quarter over the prior year and its inventory levels position this business appropriately for solid sales growth going into fiscal year 2007."
Humphreys continued, "We are excited to announce the acquisition of Fun-Tees Inc, which is anticipated to close on October 2nd 2006. Fun-Tees will enhance our Activewear segment through its private label programs and its off-shore decorating capabilities. We are also pleased to announce that we are opening a textile facility in Honduras, which will allow us to continue to lower our manufacturing costs and enable us to produce our core activewear products from start to finish at one location."
The company's results for the fiscal 2006 fourth quarter and annual periods include the operations of Junkfood Clothing Company since its acquisition by the company on August 22nd 2005.
For the three months ended July 1st 2006, net sales were a record $82.5 million, an increase of 24.4%, compared to $66.3 million in the prior year's fourth quarter. Gross margins increased 340 basis points to 28.7% compared to 25.3% in the prior year fourth quarter.
For the year ended July 1st 2006, net sales increased 18.4% to a record $270.1 million compared to $228.1 million in the prior year. Gross margins improved 590 basis points to 29.6% compared to 23.6% in the prior year due to increased sales of the higher margin branded apparel products and improved manufacturing costs and lower raw material pricing, offset partially by higher energy and transportation costs.
Robert Humphreys, President and CEO, commented, "We ended our fiscal year with solid results, achieving record sales and record earnings for the year. In our Retail-Ready segment, Soffe achieved a 32.6% sales growth in the fourth quarter over the prior year and its inventory levels position this business appropriately for solid sales growth going into fiscal year 2007."
Humphreys continued, "We are excited to announce the acquisition of Fun-Tees Inc, which is anticipated to close on October 2nd 2006. Fun-Tees will enhance our Activewear segment through its private label programs and its off-shore decorating capabilities. We are also pleased to announce that we are opening a textile facility in Honduras, which will allow us to continue to lower our manufacturing costs and enable us to produce our core activewear products from start to finish at one location."
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