By Alan Hatfield
Activewear and lifestyle apparel provider Delta Apparel, Inc. (NYSE American: DLA) yesterday posted record revenue and earnings, topping expectations and capping a stronger-than-expected fiscal first half.
Net sales of $131.7 million in the firscal second quarter represented a 21% improvement on Q2 of fiscal 2021, led by a 22% increase in sales for the Delta Group segment, the company’s largest, and a 14% increase in sales for the Salt Life segment. The company increased the number of Salt Life retail locations to 18, well on track for the stated goal of 20 retail locations for the beach clothing brand by the end of 2022.
Meanwhile, gross margin increased to 25.5%, a 2.7% increase on the year prior, and net income increased more than 130% on the year prior to $10.1 million, or $1.44 per diluted share, driven by higher operating profits and a lower tax rate.
“The continued strength in current year results reflects strong performance across both our Delta and Salt Life business segments,” Chairman and Chief Executive Officer Robert W. Humphreys said in a statement. “Significant growth in our Delta group segment was achieved through unit sales growth, increased value-added services, and our continued ability to update our pricing in the marketplace to offset higher input costs.”