Delta Apparel, Inc. (PPAI 188431) reports net income of $4.5 million in its fiscal 2017 second quarter, which ended April 2017, up 33 percent from second quarter 2016. Operating profit for the quarter was $7.5 million, or 7.2 percent of sales, versus $5.9 million, or 5.4 percent of sales, during the same period last year.

Robert W. Humphreys, Delta Apparel, Inc.’s chairman and chief executive officer, says, “Our fiscal 2017 second quarter was productive and we completed a number of key initiatives to further improve our business results. Earnings were up nearly 10 percent even after adjusting for the 11 cents-per-share gain from the sale of Junkfood. As we indicated last quarter, we remain focused on strategies that will drive revenue growth and improved operating margins throughout our company.”

The Greenville, South Carolina, supplier’s net sales for the quarter were $104.1 million, compared to $109.2 million in Q2 last year. The company attributes the sales decline primarily to considerably lower sales at Junkfood during the quarter and the lingering impact of The Sports Authority bankruptcy on Soffe revenue.

The supplier’s net sales for the first six months of 2017 were $189.5 million, compared to $199.3 million in the first half of 2016. Net income was $3.9 million versus $4.1 million last year.

Delta Apparel saw its basics segment revenue grow to $70.8 million from $69.8 million in second quarter 2016. Its Art Gun line turned in an 11-percent revenue increase, a record for the brand, while Delta Activewear sales grew one percent on strong sales growth with private label programs and a 40-percent sales increase in fashion basics. Operating profit in the basics segment for the quarter was $7.6 million, or 10.7 percent of sales, compared with $6.7 million, or 9.6 percent of sales, last year.

Revenue in the company’s branded segment for the 2017 second quarter was $33.3 million compared to $39.3 million in the 2016 second quarter. Delta Apparel attributes the slip to a 40-percent decline in Junkfood sales and The Sports Authority bankruptcy’s impact on Soffe’s sales. Soffe, however, grew its direct-to-consumer business, with branded ecommerce revenue up 38 percent for the quarter, bringing its year-to-date growth to 34 percent. Salt Life increased its revenues by 10 percent, with growth driven by its expanded product line and broadened distribution. Operating profits in Salt Life were further enhanced by lower distribution expenses and leveraged administrative costs. Operating profit in the branded segment, including the $1.3 million gain on the sale of Junkfood, was $2.8 million, or 8.3 percent of sales, compared with $2.6 million, or 6.5 percent of sales, in the prior year second quarter.