Home / Knowledge / News / Apparel/Garments / Delta Apparel gross margin hit by higher raw material prices
Delta Apparel gross margin hit by higher raw material prices
25
Apr '08
Delta Apparel Inc reported financial results for its third fiscal quarter ended March 29, 2008.

Net sales for the three months ended March 29, 2008, were $75.4 million compared to $85.0 million in the prior year's third quarter. The decrease was due to lower sales in the activewear segment offset by increased sales in the retail-ready segment.

Gross margins declined 360 basis points to 20.8% compared to 24.4% in the prior year third quarter primarily as a result of textile restructuring related costs, higher raw material prices, increased energy and transportation costs and sales of a more basic mix in the catalog tee business.

The Company previously announced on July 18, 2007, an overall restructuring plan which included the closing of its Fayette, Alabama manufacturing facility, the expensing of excess manufacturing costs with the FunTees integration and the expensing of start-up costs stemming from the opening of its Honduran textile facility.

In the third quarter of fiscal 2008, the Company expensed $0.9 million, or $0.07 per diluted share, predominantly related to start-up costs from the opening of its Honduran textile facility. We expect that these third quarter restructuring costs will be the final charges relating to the Company's textile restructuring plan announced on July 18, 2007.

Net loss for the third quarter, inclusive of the textile restructuring charges, was $0.4 million, or ($0.05) per diluted share, compared to the prior year's net income of $2.8 million, or $0.32 per diluted share.


Must ReadView All

India seeks more cooperation with Vietnam in 4 key sectors

Textiles | On 22nd Nov 2018

India seeks more cooperation with Vietnam in 4 key sectors

Indian President Ram Nath Kovind recently called for more cooperation ...

Courtesy: Kai Pilger from Pexels

Apparel/Garments | On 22nd Nov 2018

Bahamas urges garment firms to avail import duty waiver

The Bahamas ministry of finance recently urged retail shoe and...

Japan's clothing imports up 8.4% in H1 2018-19

Apparel/Garments | On 22nd Nov 2018

Japan's clothing imports up 8.4% in H1 2018-19

Japan’s imports of clothing and accessories increased by 8.4 per cent ...

Interviews View All

Riddhika Shah, SS Homme

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Rajiv Sirohi, Shara

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Anvita Mehra, Confidential Couture

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Tom,

Tom

<div>Inkbank is a leading supplier of inkjet inks and inkjet printing...

Mario Ploner,

Mario Ploner

<div>Italian company Tecnomeccanica Biellese specialises in planning and...

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search