Delta Attire makes positive aspects with fundamentals and direct-to-garment printing

Greenville, South Carolina-based Delta Attire, Inc. reported its first quarter and first half 2018 outcomes on Monday, with reasonable progress within the group’s fundamentals phase dampened by its branded division.

 
Internet gross sales for the second quarter ended March 31, 2018 had been $100.0 million in comparison with $104.1 million within the earlier yr. The corporate did, nonetheless, emphasize that this determine is a rise of $1.9 million, or 2%, when the $6.0 million achieve attributable to Junkfood Clothes – bought to JMJD final yr – is subtracted from the 2017 complete.
 
Internet revenue got here to $3.6 million.

The group’s fundamentals phase noticed revenues rise 4% to $73.7 million within the quarter. Activewear gross sales rose 2%, led by a 15% enhance in catalog gross sales however offset by a decline in personal label gross sales.
 
Inside this phase, the second quarter additionally noticed the acquisition of direct-to-garment printing firm DTG2Go in March. This new acquisition was mixed with Delta’s present printing model Artwork Gun (underneath the title DTG2Go) and achieved a 60% enhance in gross sales Q2.
 
This progress was offset considerably by Delta’s branded phase which noticed revenues drop to $26.3 million from $33.3 million within the prior yr interval, due partly to the corporate’s resolution to divest itself of Junkfood Clothes in March of final yr.

Gross sales of Delta’s Soffe model additionally fell barely within the quarter from $12.8 million to $12.4 million, though they grew virtually 10% within the first six months of the fiscal yr, pushed by e-commerce and inclusive sizing initiatives.
 
Delta additionally highlighted the efficiency of Salt Life, whose gross sales rose 7%, with progress made throughout most channels.
 
“Our fiscal 2018 second quarter was each productive and worthwhile, with year-over-year natural gross sales and earnings progress in market situations that remained difficult,” stated Delta Attire Chairman and CEO Robert W. Humphreys in a launch.
 
“Regardless of an uneven retail surroundings and price pressures in quite a lot of areas, our general first-half efficiency was strong and our workforce is targeted on methods that ought to meaningfully impression each the highest and backside strains.”
 
Within the first six months of fiscal 2018, Delta’s web gross sales rose to $190.3 million from $189.5 million within the first half of 2017, up 9% when excluding the $15.4 million of gross sales accounted for by Junkfood Clothes within the prior yr interval.
 
Internet loss for the interval was $6.3 million, together with a $10.6 million cost associated to the US tax reform laws.
 
Excluding the unfavorable results of the tax cost, earnings had been $4.2 million, up 12% from $3.9 million.