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Delta Apparel announces preliminary Q2 2007 results

09
Jan '07

Delta Apparel Inc announced preliminary financial results for the second quarter ended December 30, 2006 and updated its guidance for the fiscal year ended June 30, 2007.

The Company currently expects second quarter revenues to be approximately $72 to $73 million versus its prior expectation of $74 to $78 million. Earnings are now expected to be in the range of $0.05 to $0.07 per diluted share versus its prior guidance of $0.14 to $0.18.

For the full fiscal year, the Company is lowering its sales expectations to $315 to $330 million from its prior guidance of $325 to $340 million. The Company now expects diluted earnings per share to be in the range of $1.33 to $1.46 per diluted share for the 2007 fiscal year versus its prior guidance of $1.81 to $2.00 per diluted share.

Robert W. Humphreys, the Company's President and Chief Executive Officer commented, "Our second quarter performance was primarily impacted by slower than projected sales in our non-branded activewear business, which missed expectations by approximately $5 million."

"Although we did see selling price improvements from the first quarter, the weak retail environment during the holiday season hurt our ability to achieve the price targets and sales volumes we forecasted. We anticipate adjusting our manufacturing schedules in the second half of the year to reflect the lower activewear sales. Second quarter sales in our Junkfood business strengthened over the first quarter and were in-line with our expectations."

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