Supplier Delta Apparel (UPIC: delta03), which operates industry facilities in Duluth, Georgia, has released its financial details for the second quarter and first half of 2016. In the fiscal second quarter ending April 2, the company reports net income of $3.4 million, while its first six-month’s income of $4.1 million is notably different from the $565,000 net loss it reported during the same period last year.

Delta Apparel’s net sales, affected in part by the bankruptcy of a large retail customer, were $109.2 million for the quarter compared with sales of $109.6 million in 2015’s second quarter after adjusting for sales of $5.4 million in the since-divested The Game business, and under the Kentucky Derby license that the company did not seek to renew for 2016. For the first six months of fiscal 2016, net sales increased to $199.3 million from $197.6 million in the prior year period adjusted for sales attributed to The Game business and the Kentucky Derby license.

The supplier has put measures in place for the past two years to expand its manufacturing capacity and improve its flexibility. Subsequently, it will close its textile manufacturing operation in Maiden, North Carolina, and move production to its Honduras textile facility. Its Mexico sew and screen-print production with in-country sourced fabric, and its Rowland, North Carolina, plant will source domestic fabric from current suppliers to support its Made In The USA programs.

Robert W. Humphreys, Delta Apparel, Inc.’s chairman and CEO, says, “The strength that Delta Apparel has shown in the first half of this fiscal year is a testament to the effectiveness of the strategic initiatives we announced 18 months ago, and the ability of our team to successfully implement them. While conditions in the retail apparel marketplace have shown little improvement, we have made significant progress both financially and operationally. Delta Apparel is now more streamlined and focused on areas that offer the greatest potential for profitable growth. We have significantly upgraded our manufacturing capabilities, improved customer service and expanded our product offerings. As a result, we have seen higher demand for Delta Apparel products, lower manufacturing costs, and significant margin expansions in each of the past four quarters, along with increased profitability.”

Click here for more details from the company’s financial statement.