Delta Attire Experiences Fourth Quarter and Full 12 months Fiscal 2022 Outcomes

Full 12 months Internet Gross sales Enhance 11%, Full 12 months Diluted EPS of $2.80

DULUTH, Ga., November 17, 2022–(BUSINESS WIRE)–Delta Attire, Inc. (NYSE American: DLA), a number one supplier of core activewear and way of life attire merchandise and direct-to-garment digital printing, right this moment introduced monetary outcomes for its 2022 fiscal fourth quarter and full yr ended October 1, 2022.

Robert W. Humphreys, the Firm’s Chairman and Chief Govt Officer, commented, “We’re happy to announce outcomes marking our second consecutive yr of sturdy natural development. The mixture of our diversified go-to-market methods with our vertically built-in manufacturing and repair platforms allowed us to efficiently navigate a dynamic enterprise and financial atmosphere. All 5 of our market channels – Delta Direct, World Manufacturers, Retail Direct, DTG2Go, and Salt Life – delivered year-over-year gross sales development in fiscal 2022.

Inside our Delta Group phase, we continued to see strong development in our regional display screen print and advert specialty companies together with growing curiosity within the provide chain options provided in our World Manufacturers and Retail Direct channels. Our DTG2Go print-on-demand enterprise continues to develop, with a robust double-digit gross sales enhance on the yr, and order stream for our digital first technique exceeds our present capability. We stay extraordinarily centered on growing output to satisfy demand on this vital development space.

Our Salt Life phase achieved one other file yr of gross sales and working outcomes, with total gross sales outpacing the prior yr by 21%. The Salt Life model’s capacity to attach with shoppers throughout its many advertising touchpoints led to natural development in all three Salt Life omni-channel markets – wholesale, retail and eCommerce – within the fourth quarter. We ended the yr with 21 Salt Life branded retail doorways open for enterprise throughout the U.S. shoreline from Southern California to Key West and up the japanese seaboard to Rehoboth Seashore, Delaware.

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The flexibleness of our vertical, near-shore manufacturing platform enabled us to rapidly reply to market fluidity and regulate manufacturing ranges to handle stock and mitigate increased enter prices. We at the moment plan to function a few of our amenities at lower than full capability within the first half of fiscal 2023 till inventories higher align with total demand.

Mr. Humphreys concluded, “I stay extremely pleased with our associates as they proceed to answer the ever-changing wants of our enterprise. Due to their exhausting work and dedication, we transfer into our new fiscal yr with a extremely resilient and diversified enterprise mannequin able to seize alternatives and meet the challenges forward.”

For the fourth quarter ended October 1, 2022:

• Internet gross sales have been $115.5 million, a slight enhance over prior yr interval web gross sales of $114.7 million. Internet gross sales within the Salt Life Group phase elevated 15.6% over the prior yr interval, whereas web gross sales within the Delta Group phase decreased 1.1%.

• Gross revenue was $21.6 million, in comparison with $26.5 million within the prior yr interval, with gross margins declining 440 foundation factors to 18.7%. Gross margin enchancment within the Salt Life Group phase helped offset a gross margin decline within the Delta Group phase pushed by increased enter prices in its Activewear and DTG2Go companies and unabsorbed fastened manufacturing prices. We began decreasing manufacturing of primary tees within the September quarter, which resulted in $1.1 million of unabsorbed fastened prices.

• Promoting, common and administrative (“SG&A”) bills have been $19.8 million, in comparison with $17.7 million within the prior yr interval. SG&A bills as a share of gross sales elevated 170 foundation factors to 17.2%, in comparison with 15.5% within the prior yr interval. Promoting prices related to the Salt Life retail retailer enlargement and better distribution labor prices primarily drove the rise.

• Working revenue was $2.2 million, a decline of 78.0% from the prior yr interval. The decline resulted in a web lack of $0.3 million, or $0.04 per diluted share for the quarter in comparison with web revenue of $6.9 million, or $0.96 per diluted share, within the prior yr interval.

For the total yr ended October 1, 2022:

• Internet gross sales elevated 11.0% to $484.9 million from $436.8 million within the prior yr. Internet gross sales within the Delta Group and Salt Life Group segments elevated 9.8% and 20.8%, respectively, over the prior yr.

• Gross revenue elevated 6.8% to $108.8 million from $101.9 million within the prior yr. Gross margins have been 22.4%, a decline of 90 foundation factors from the prior yr pushed by a decline within the Delta Group phase partially offset by enchancment within the Salt Life Group phase.

• Promoting, common and administrative (“SG&A”) bills have been $79.5 million, in comparison with $70.7 million within the prior yr, pushed by promoting prices related to enlargement of Salt Life’s retail footprint and better distribution labor prices. SG&A bills as a share of gross sales have been comparatively flat at 16.4%, in comparison with 16.2% within the prior yr.

• Working revenue was $31.8 million, leading to an working margin of 6.6%, in comparison with working revenue of $32.7 million and working margin of seven.5% within the prior yr.

• Internet revenue was $19.7 million, or $2.80 per diluted share, in comparison with web revenue of $20.3 million, or $2.86 per diluted share, within the prior yr.

Complete web stock at year-end was $248.5 million, in comparison with $161.7 million a yr in the past. The year-over-year stock enlargement displays increased enter prices impacting supplies, transportation and labor in addition to a rise in items available.

Complete web debt, together with capital lease financing and money available, at year-end was $170.6 million, in comparison with $121.7 million a yr in the past.

Convention Name

The Firm will maintain a convention name with senior administration to debate its monetary outcomes right this moment at 4:30 p.m. ET. The Firm invitations you to affix the decision by dialing 877-704-4453. If calling from outdoors the USA, please dial 201-389-0920. A dwell webcast of the convention name will likely be out there at www.deltaapparelinc.com. Please go to the web site no less than quarter-hour early to register for the teleconference webcast and obtain any obligatory software program. A replay of the decision will likely be out there by December 17, 2022. To entry the phone replay, contributors ought to dial toll-free 844-512-2921. Worldwide callers can dial 412-317-6671. The entry code for the replay is 13733708.

About Delta Attire, Inc.

Delta Attire, Inc., together with its working subsidiaries DTG2Go, LLC, Salt Life, LLC, and M.J. Soffe, LLC, is a vertically-integrated, worldwide attire firm that designs, manufactures, sources, and markets a various portfolio of core activewear and way of life attire merchandise underneath the first manufacturers of Salt Life®, Soffe®, and Delta. The Firm is a market chief within the direct-to-garment digital print and achievement business, bringing proprietary DTG2Go know-how and innovation to buyer provide chains. The Firm makes a speciality of promoting informal and athletic merchandise by quite a lot of distribution channels and tiers, together with outside and sporting items retailers, unbiased and specialty shops, higher shops and mid-tier retailers, mass retailers and e-retailers, the U.S. navy, and thru its business-to-business e-commerce websites. The Firm’s merchandise are additionally made out there direct-to-consumer on its web sites at www.saltlife.com, www.soffe.com and www.deltaapparel.com in addition to by its branded retail shops. The Firm’s operations are situated all through the USA, Honduras, El Salvador, and Mexico, and it employs roughly 8,600 folks worldwide. Extra details about the Firm is on the market at www.deltaapparelinc.com.

Cautionary Observe Relating to Ahead-Trying Statements

This press launch might comprise “forward-looking” statements that contain dangers and uncertainties. Any variety of components might trigger precise outcomes to vary materially from anticipated or forecasted outcomes, together with, however not restricted to, the overall U.S. and worldwide financial circumstances; the influence of the COVID-19 pandemic and authorities/social actions taken to comprise its unfold on our operations, monetary situation, liquidity, and capital investments, together with current labor shortages, stock constraints, and provide chain disruptions; vital interruptions or disruptions inside our manufacturing, distribution or different operations; deterioration within the monetary situation of our clients and suppliers and adjustments within the operations and techniques of our clients and suppliers; the volatility and uncertainty of cotton and different uncooked materials costs and availability; the aggressive circumstances within the attire business; our capacity to foretell or react to altering client preferences or tendencies; our capacity to efficiently open and function new retail shops in a well timed and cost-effective method; the power to develop, obtain synergies and understand the anticipated profitability of acquisitions; adjustments in financial, political or social stability at our offshore places or in areas wherein we, or our suppliers or distributors, function; our capacity to draw and retain key administration; the volatility and uncertainty of power, gas and associated prices; materials disruptions in our info programs associated to our enterprise operations; compromises of our information safety; vital adjustments in our efficient tax fee; vital litigation in both home or worldwide jurisdictions; recollects, claims and destructive publicity related to product legal responsibility points; the power to guard our emblems and different mental property; adjustments in worldwide commerce laws; our capacity to adjust to commerce laws; adjustments in employment legal guidelines or laws or our relationship with staff; destructive publicity ensuing from violations of producing requirements or labor legal guidelines or unethical enterprise practices by our suppliers and unbiased contractors; the lack of suppliers or different third-parties, together with these associated to transportation, to satisfy the phrases of their contracts with us; restrictions on our capacity to borrow capital or service our indebtedness; rate of interest fluctuations growing our obligations underneath our variable fee indebtedness; the power to lift further capital; the impairment of acquired intangible belongings; overseas foreign money trade fee fluctuations; the illiquidity of our shares; worth volatility in our shares and the overall volatility of the inventory market; and the opposite components set forth within the “Threat Elements” contained in our most up-to-date Annual Report on Kind 10-Okay filed with the Securities and Trade Fee and as up to date in our subsequently filed Quarterly Experiences on Kind 10-Q. Besides as could also be required by regulation, Delta Attire, Inc. expressly disclaims any obligation to replace these forward-looking statements to replicate occasions or circumstances after the date of this press launch or to replicate the incidence of unanticipated occasions.

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Contacts

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Buyers:
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Media:
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