Delta Apparel Reports Fourth Quarter and Full Year Fiscal 2022 Results; Full Year Net Sales Increase 11%, Full Year Diluted EPS of $2.80

DULUTH GaDelta Apparel, Inc. (NYSE American : DLA), a major provider of lifestyle and core activewear, as well as digital printing direct-to-garment products, today announced financial results for its fiscal fourth quarter (2022) and the full year (2022). October 1, 2022.

Robert W. HumphreysThe Company’s Chairman, Chief Executive Officer and Chief Operating Officer stated, “We are happy to announce results marking the second consecutive year of strong organic development.” Combining our diverse go-to market strategies with our vertically-integrated manufacturing and service platforms helped us navigate a dynamic economic and business environment. Delta Direct is the fifth of our market channels. Global BrandsRetail Direct DTG2GoSalt Life and, both delivered year-over–year sales growth in fiscal 2022.

Our website is Delta Group Segment, we saw solid growth in our regional ad specialty and screen printing businesses. We also noticed an increase in interest in the supply chain options offered by our Global Brands Retail Direct channels. Our DTG2Go Print-on-demand continues to grow with strong double-digit sales increases over the past year. The order flow for our digital-first strategy is exceeding our current capacity. We will continue to focus on increasing production to meet this critical growth area.

Salt Life’s segment had another record year in terms of operating and sales results. Overall sales surpassed the previous year by 21%. Through its multiple marketing touchpoints, the Salt Life brand was able to connect with consumers and drive organic growth in all three Salt Life Omni-channel markets (retail, wholesale, and eCommerce) in the fourth quarter. The year ended with 21 Salt Life-branded retail doors available for business in the United States. U.S. Coast from Southern California To Key West And up the eastern coast to Rehoboth Beach Delaware.

Our vertical, near-shore manufacturing platform allows us to react quickly to market changes and adjust production levels in order to manage inventory and lower input costs. We plan to keep some of our facilities operating at less than their full capacity during the first half fiscal 2023, until inventory levels are better aligned with overall demand.

Mr. Humphreys “I am still incredibly proud of my associates, as they continue responding to the ever-changing demands of our business,” concluded I. Their hard work and dedication enabled us to move into the new fiscal year with a highly resilient business model, ready to face any challenges.

Fourth quarter concluded October 1, 2022:

Net sales reached $2.5 billion $115.5 millionA slight increase in net sales compared to the prior year period $114.7 million. Net sales Salt Life Group Segment sales increased 15.6% compared to the prior-year period. Net sales in the segment increased by the same amount. Delta Group Segment decreased 1.1%

Gross profit was $21.6 millionComparable to $26.5 Million In the preceding year, gross margins fell 440 basis point to 18.7%. Gross margin improvement Salt Life Group Segment helped offset a decline in gross margins Delta Group Segment driven mainly by its Activewear segment and higher input costs DTG2Go Unabsorbed fixed manufacturing costs for businesses. In the September quarter, we began to reduce production of basic tees. $1.1 Million Unabsorbed fixed cost.

Selling, general and administrative (‘SG&A’) expenses were $19.8 millionsComparable to $17.7 millions The prior year period. SG&A expenses as a percentage of sales increased 170 basis points to 17.2%, compared to 15.5% in the prior year period. This was due to an increase in selling costs as a result of the Salt Life retail outlet expansion and higher distribution labor cost.

Operating income was $2.2 millionThis is a decrease of 78.0% compared to the previous year. This resulted in a net loss. $0.3 MillionOr $0.04 Per diluted share for quarter compared with net income $6.9 MillionOr $0.96 In the preceding year, per diluted share.

The full year ended October 1, 2022:

Net sales rose 11.0% $484.9 million Starting at $436.8 millions In the previous year. Net sales Delta Group Salt Life Group Segments grew by 9.8% and 20%, respectively, in the past year.

Gross profit rose 6.8% $108.8 million Starting at $101.9 Million In the previous year. The gross margins in 2008 were 22.4%. This was a 90 basis point decrease from the prior year. Delta Group Segment partially offset by improvements in the Salt Life Group segment.

Selling, general and administrative (‘SG&A’) expenses were $79.5 MillionComparable to $70.7 Million The increase in distribution labor costs and selling costs associated to expanding Salt Life’s retail footprint drove the sales growth in the previous year. SG&A expenses as a percentage of sales were relatively flat at 16.4%, compared to 16.2% in the prior year.

Operating income was $31.8 MillionThis resulted in an operating profit of 6.6% compared to an operating income of $32.7 Million Operating margin of 7.5% in previous year

Net income was $19.7 millionsOr $2.80 Per diluted share, as compared to net Income $20.3 millionOr $2.86 In the preceding year, per diluted share

At year-end, total net inventory was $248.5 MillionComparable to $161.7 million One year ago. Year-over-year inventory growth is due to higher input costs that impact materials, transportation, and labor, as well as an increase of units on hand.

At year-end, total net debt (capital lease financing, cash on hand) was $170.6 millionComparable to $121.7 million One year ago.

Conference Call

The Company will host a conference phone call with its senior management today to discuss its financial results. 4:30 p.m. ET. The Company invites all to join the call at 877-704-453 If you are calling from abroad The United StatesTo reach us, dial 201-389-920. A live webcast of the conference call will be available at To register for the teleconference and to download any software, please visit the website at minimum 15 minutes prior. You can replay the call through December 17, 2022. Participants should dial toll free 844-512-2911, or international callers 412-317-6671, to access the replay. Access code 13733708 is the replay access code

About Delta Apparel, Inc.

Delta Apparel, Inc.Together with its operating subsidiaries, DTG2Go, LLC, Salt Life, LLC?, and M.J. Soffe, LLC, is a vertically-integrated, international apparel company that designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life, Soffe, and Delta. The Company is a market leader within the direct-to garment digital printing and fulfillment industry. DTG2Go Technology and innovation are key to improving customer supply chains. The Company is a specialist in selling casual and sports products through a variety distribution channels and tiers including independent and specialty shops, sporting goods retailers, higher-end department stores, mid-tier retailers, mass retailers and e-retailers. U.S. Military, as well as through its business to-business ecommerce sites. Products from the Company are also available directly-to-consumer through its websites, as well as its retail stores. The Company’s operations can be found all over the globe. The United States, Honduras, El Salvador?, and MexicoThe company employs approximately 8,600 people around the globe. Additional information about the Company is available at

Cautionary Note Concerning Forward-Looking Statements

Forward-looking statements in this press release could contain risks and uncertainties. A variety of factors can cause actual results to differ materially to those anticipated or forecasted, including but not limited to the general U.S. international economic conditions; impact of the COVID-19 pandemic on our operations, financial conditions, liquidity, capital investments and capital expenditures; deterioration or disruptions in the financial position of our customers or suppliers and changes to the strategies and operations of these customers or suppliers; volatility and uncertain prices of cotton; how we can predict and react to changing consumer trends or preferences; our ability and ability to attract and keep key management; restrictions on the ability of us to borrow capital or service indebtedness; interest rates fluctuations increasing our obligations; ability to raise additional capital and to the illiquidity; volatility; Securities and Exchange Commission As updated in our Quarterly Reports on Form 10Q. Except where required by law Delta Apparel, Inc. This press release expressly disclaims any obligation or obligation to revise forward-looking statements in order to reflect circumstances or events that occur after this date or the occurrence unanticipated.

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