Delta Apparel’s Q1 Report Highlights Strong Sales Growth
Delta Apparel, Inc. (PPAI 188431, S9) registered stronger than expected first-quarter sales in its fiscal year 2022 first quarter, which ended January 1. The Duluth, Georgia-headquartered supplier has announced preliminary sales results for the quarter, noting that it expects overall net sales to be approximately $109 million, about 15-percent higher than the $94.7 million achieved in the fiscal first quarter of the prior year.
The company attributes the outstanding sales growth to strong demand across all of its business units, combined with impressive manufacturing and operational performance. Higher selling prices including additional value-adding steps also contributed to the sales growth achieved during the quarter, Delta Apparel reports.
“We are extremely pleased with the top-line results delivered this quarter, which showed strong growth over the first quarter of fiscal 2021 and also was significantly higher than the first quarter of fiscal 2019 sales,” says Robert W. Humphreys, the company’s chairman and CEO. “The Delta Group and the Salt Life Group each achieved double digit sales growth for the quarter. The Delta Group demand currently exceeds capacity in most channels of distribution. Manufacturing initiatives are expected to increase available capacity in the back half of this fiscal year. The Salt Life Group’s sales growth was approximately 25-percent higher than the first quarter of fiscal 2021, which was driven by strong demand from wholesale customers combined with outstanding growth in its direct-to-consumer channels of distribution.
Humphreys adds, “We have demonstrated over the past year Delta Apparel has a strong vertical supply chain that is diversified, reliable and delivers value adding services that are in high demand. This combined with our unique technology and print on demand business, DTG2Go, positions us uniquely in the marketplace. Further, our high growth, high margin Salt Life branded business provides an additional platform to drive value for our shareholders while further leveraging our manufacturing, sourcing and design capabilities.”