Delta Apparel Reports Fourth Quarter and Full Year Fiscal 2022 Results

Full Yr Web Gross sales Improve 11%, Full Yr 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 life-style attire merchandise and direct-to-garment digital printing, right this moment introduced monetary outcomes for its 2022 fiscal fourth quarter and full 12 months 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 12 months of robust natural development. The mix 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 surroundings. All 5 of our market channels – Delta Direct, International Manufacturers, Retail Direct, DTG2Go, and Salt Life – delivered year-over-year gross sales development in fiscal 2022.

Inside our Delta Group section, we continued to see stable development in our regional display screen print and advert specialty companies together with rising curiosity within the provide chain options provided in our International Manufacturers and Retail Direct channels. Our DTG2Go print-on-demand enterprise continues to develop, with a powerful double-digit gross sales improve on the 12 months, and order move for our digital first technique exceeds our present capability. We stay extraordinarily centered on rising output to satisfy demand on this necessary development space.

Our Salt Life section achieved one other report 12 months of gross sales and working outcomes, with total gross sales outpacing the prior 12 months by 21%. The Salt Life model’s potential to attach with customers throughout its many advertising and marketing touchpoints led to natural development in all three Salt Life omni-channel markets – wholesale, retail and eCommerce – within the fourth quarter. We ended the 12 months 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 Seaside, Delaware.

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The flexibleness of our vertical, near-shore manufacturing platform enabled us to shortly reply to market fluidity and alter manufacturing ranges to handle stock and mitigate greater enter prices. We at the moment plan to function a few of our services 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 reply to the ever-changing wants of our enterprise. Because of their onerous work and dedication, we transfer into our new fiscal 12 months 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:

• Web gross sales have been $115.5 million, a slight improve over prior 12 months interval internet gross sales of $114.7 million. Web gross sales within the Salt Life Group section elevated 15.6% over the prior 12 months interval, whereas internet gross sales within the Delta Group section decreased 1.1%.

• Gross revenue was $21.6 million, in comparison with $26.5 million within the prior 12 months interval, with gross margins declining 440 foundation factors to 18.7%. Gross margin enchancment within the Salt Life Group section helped offset a gross margin decline within the Delta Group section pushed by greater 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, basic and administrative (“SG&A”) bills have been $19.8 million, in comparison with $17.7 million within the prior 12 months interval. SG&A bills as a proportion of gross sales elevated 170 foundation factors to 17.2%, in comparison with 15.5% within the prior 12 months 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 12 months interval. The decline resulted in a internet lack of $0.3 million, or $0.04 per diluted share for the quarter in comparison with internet revenue of $6.9 million, or $0.96 per diluted share, within the prior 12 months interval.

For the total 12 months ended October 1, 2022:

• Web gross sales elevated 11.0% to $484.9 million from $436.8 million within the prior 12 months. Web gross sales within the Delta Group and Salt Life Group segments elevated 9.8% and 20.8%, respectively, over the prior 12 months.

• Gross revenue elevated 6.8% to $108.8 million from $101.9 million within the prior 12 months. Gross margins have been 22.4%, a decline of 90 foundation factors from the prior 12 months pushed by a decline within the Delta Group section partially offset by enchancment within the Salt Life Group section.

• Promoting, basic and administrative (“SG&A”) bills have been $79.5 million, in comparison with $70.7 million within the prior 12 months, pushed by promoting prices related to enlargement of Salt Life’s retail footprint and better distribution labor prices. SG&A bills as a proportion of gross sales have been comparatively flat at 16.4%, in comparison with 16.2% within the prior 12 months.

• 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 12 months.

• Web revenue was $19.7 million, or $2.80 per diluted share, in comparison with internet revenue of $20.3 million, or $2.86 per diluted share, within the prior 12 months.

Whole internet stock at year-end was $248.5 million, in comparison with $161.7 million a 12 months in the past. The year-over-year stock enlargement displays greater enter prices impacting supplies, transportation and labor in addition to a rise in models available.

Whole internet debt, together with capital lease financing and money available, at year-end was $170.6 million, in comparison with $121.7 million a 12 months 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 reside webcast of the convention name shall be accessible at www.deltaapparelinc.com. Please go to the web site at the least quarter-hour early to register for the teleconference webcast and obtain any obligatory software program. A replay of the decision shall be accessible by December 17, 2022. To entry the phone replay, individuals 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 life-style attire merchandise beneath the first manufacturers of Salt Life®, Soffe®, and Delta. The Firm is a market chief within the direct-to-garment digital print and success trade, bringing proprietary DTG2Go expertise 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 out of doors and sporting items retailers, impartial and specialty shops, higher malls and mid-tier retailers, mass retailers and e-retailers, the U.S. army, and thru its business-to-business e-commerce websites. The Firm’s merchandise are additionally made accessible 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 positioned all through the USA, Honduras, El Salvador, and Mexico, and it employs roughly 8,600 folks worldwide. Extra details about the Firm is accessible at www.deltaapparelinc.com.

Cautionary Notice Relating to Ahead-Wanting Statements

This press launch might include “forward-looking” statements that contain dangers and uncertainties. Any variety of elements might trigger precise outcomes to vary materially from anticipated or forecasted outcomes, together with, however not restricted to, the final U.S. and worldwide financial circumstances; the impression of the COVID-19 pandemic and authorities/social actions taken to include 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 prospects and suppliers and adjustments within the operations and methods of our prospects and suppliers; the volatility and uncertainty of cotton and different uncooked materials costs and availability; the aggressive circumstances within the attire trade; our potential to foretell or react to altering shopper preferences or developments; our potential 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 by which we, or our suppliers or distributors, function; our potential to draw and retain key administration; the volatility and uncertainty of vitality, gasoline and associated prices; materials disruptions in our info methods 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 unfavorable publicity related to product legal responsibility points; the power to guard our logos and different mental property; adjustments in worldwide commerce laws; our potential to adjust to commerce laws; adjustments in employment legal guidelines or laws or our relationship with workers; unfavorable publicity ensuing from violations of producing requirements or labor legal guidelines or unethical enterprise practices by our suppliers and impartial 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 potential to borrow capital or service our indebtedness; rate of interest fluctuations rising our obligations beneath 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; value volatility in our shares and the final volatility of the inventory market; and the opposite elements set forth within the “Danger Elements” contained in our most up-to-date Annual Report on Kind 10-Ok filed with the Securities and Trade Fee and as up to date in our subsequently filed Quarterly Stories on Kind 10-Q. Besides as could also be required by legislation, Delta Attire, Inc. expressly disclaims any obligation to replace these forward-looking statements to mirror occasions or circumstances after the date of this press launch or to mirror the incidence of unanticipated occasions.

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Contacts

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Media:
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