Delta Apparel Inc announced preliminary financial results for the first quarter ended September 30, 2006 and updated its guidance for the fiscal year ended June 30, 2007.
The Company currently expects first quarter revenues in the range of $61 million to $63 million versus its prior expectation of $64 to $68 million. It also now expects diluted earnings per share in the range of $0.25 to $0.27 versus prior guidance of $0.41 to $0.45.
As reported in the Company's August 18, 2006 earnings release, net income in the first quarter of 2007 includes an extraordinary gain associated with the final earn-out payment made to the former M. J. Soffe shareholders. This extraordinary gain is expected to be approximately $0.09 per diluted share for the 2007 first fiscal quarter.
For the full fiscal year, the Company continues to expect net sales to be in the range of $325 to $340 million. The Company now expects diluted earnings per share to be in the range of $1.81 to $2.00 per diluted share for the 2007 fiscal year versus its prior guidance of $1.91 to $2.05 per diluted share.
Robert W. Humphreys, the Company's President and Chief Executive Officer, commented, "While we set new sales records for our first quarter, sales were below our expectations in our Junkfood business. Revenue in our Delta business was ahead of the prior year but lower than expected, and margins during the quarter were depressed by weak pricing and promotional freight costs."