Delta Apparel, Inc.(PPAI 188431, S8) has announced preliminary net sales figures for its fiscal 2022 second quarter, which ended April 2. The Duluth, Georgia-headquartered supplier projects year-over-year sales growth for the quarter of approximately 20%.
Fiscal Second Quarter:Delta Apparel projects net sales for its fiscal second quarter of approximately $130 million, up 20% over fiscal 2021’s second quarter figure of $108.6 million. The company’s quarterly net sales are an all-time record for second quarter, and up 26% from its pre-pandemic fiscal 2019 second quarter sales. Final and complete financial results for fiscal 2022’s second quarter will be released after the market closes on May 3.
Segment Breakdown:Delta Group’s second quarter performance is reflected in double-digit sales growth in both its Delta Group and Salt Life group segments.
Delta Group’s outstanding sales quarter was apparent in the company’s Activewear and DTG2Go businesses. Activewear growth was driven by higher unit sales, increased value-added services and the continued ability to update pricing in the marketplace to offset higher input cost. Additionally, the DTG2Go digital print business delivered an increase in units shipped over the prior year second quarter driven by Delta Apparel’s newly developed digital first technology. The company has continued to invest in its digital print ecosystem with new state-of-the-art print equipment, and the digital first technology is now operating in three of its eight DTG2Go locations and will be soon expanding to a fourth location.
Despite capacity constraints stemming from inventory shipping delays, the Salt Life brand outperformed the prior year’s second quarter. The wholesale channel continued to demonstrate strength in the first half of 2022, and the Salt Life-branded retail footprint was further expanded with the opening of two new locations during the quarter in Sarasota and Fort Lauderdale, Florida, bringing the number of retail doors to 17 locations across five states. The brand’s retail location openings have surpassed internal sales expectations.
In Their Words:
“We are continuing to see the competitive advantage of our vertical supply chain servicing our five focused go-to-market strategies and are currently enjoying strong demand across all the channels we serve,” says Robert W. Humphreys, the company’s chairman and CEO. “We recently installed additional manufacturing equipment to increase our capacity across our production network. Furthermore, we are consistently investing in manufacturing technology to improve our production efficiencies and reduce our environmental footprint, while finding new ways to service our customers in what remains a highly fluid supply chain environment. Demand for our products across both our Delta Group and Salt Life Group segments remains strong and we see further is opportunities for future growth. We look forward to providing more information on our March quarter results and business outlook in early May.”
