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Delta Apparel’s Q3 Boosted by DTG2Go, Salt Life

August 19, 2019

Delta Apparel Inc., Greenville, S.C., recently reported that earnings improved 6.5% in the company’s fiscal third quarter, which ended June 29, led by the DTG2Go digital-print business and the Salt Life lifestyle brand.

“Our team delivered a strong quarter with accelerated sales growth and profitability, and we are pleased with the performance across both our Delta Group and Salt Life Group segments,” says Robert W. Humphreys, the company’s chairman and chief executive officer. “Our DTG2Go digital-print business continues to grow rapidly and our investments in that area are allowing us to capitalize on the disruption digital-print technology is driving on graphic tees. Our Salt Life business also executed a great quarter, with strong performance across all of its major sales channels. We continue to be encouraged by the apparel growth we are seeing with regional and national retailers across multiple geographies.”

During the quarter, Delta Apparel incurred about $6.6 million in capital expenditures and spent $308,000 to repurchase 14,000 shares of its stock, according to the company. Total inventory at the end of the first nine months of fiscal 2019 was $177.8 million. This is an increase from $169.6 million a year ago, primarily due to increased units on hand from the recent digital-print acquisitions, as well as higher average cost per unit from the stronger mix of fashion basics, fleece and performance products in inventory to support the growth in these categories.

“The successes we are seeing across our business validate our focus on expanding our go-to-market strategies and sales channels, as well as investing in manufacturing technology and distribution speed,” Humphreys says. “We look forward to closing our fiscal year with more positive momentum.” — D.S.



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