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Delta Apparel Q2 sales grow 24.3%
Delta Apparel has grown its sales by 24.3% for its second quarter ended 26 December, 2009 compared with the prior year second quarter.
Net sales for the three months ended 26 December, 2009 were a record $91.2m, an increase of 24.3% from the prior year second quarter. The sales expansion was said to be driven by organic growth of 16.6% and net sales contributed by its headwear business.
Gross margins increased to 23.9% compared with 21.9% in the prior year second quarter. The company said it continues to improve gross margins in its activewear segment, which increased 330 basis points, through more effective merchandising strategies and lower manufacturing costs. Net income for quarter two was $1m.
Robert Humphreys, chairman and CEO said: “We are very pleased with our strong double digit sales growth during the second quarter which comes on top of 7% sales growth in the previous year’s quarter and amidst a challenging consumer environment.
“We believe our ability to grow our business and gain market share in all operating divisions is a validation of our powerful brands, creative graphic talent, robust consumer appeal and strong customer relationships.
“At the same time, the manufacturing initiatives we undertook a few years ago combined with our continued focus on manufacturing performance is enabling us to meet our fiscal 2010 gross margin target of 24% despite the pricing pressures in our activewear segment. As the spring selling season approaches, we believe our competitive position will allow further growth and improvement in profitability.”
