US' Delta Apparel expects revenue to rise 6% in Q4 FY21

“In what remained a highly fluid period for our industry with many cross currents, we are extraordinarily proud of the strong finish to our 2021 fiscal year. The fourth quarter performance is a testament to the strength of our strategic model to service diversified sales channels utilising our unique and flexible integrated manufacturing platform and broad geographic distribution network,” Robert W Humphreys, company’s chairman and chief executive officer, said.

“Our Delta Group sales increased 5 per cent as the custom and retail-direct business remained strong with brands and retailers alike seeing the advantages of our supply-chain partnership, with our near-shore, fully-integrated manufacturing platform and sourcing network. While our Delta catalog growth was constrained, particularly at the beginning of the quarter, from suboptimal inventory levels, our record-level manufacturing output allowed us to rebuild inventory as the quarter progressed. We expect this will continue through the first half of fiscal year 2022, positioning us for a strong spring selling season,” Humphreys continued.

The company expects net sales for fiscal 2021 to be approximately $436 million, an increase of about 14 per cent from the prior year. Earnings for the fiscal 2021 are anticipated to be in range of $2.81 to $2.84 per diluted share. Total net debt, including capital lease financing and cash on hand, was about $121 million as of September 2021, a decrease of about $11 million from June 2021 and a decrease of about $1 million from net debt levels a year ago. Cash on hand and availability under the company’s US revolving credit facility totaled about $45 million as of September 2021, Delta Apparel said in a press release.

“The powerful emotional connection consumers have with the Salt Life brand fueled strong, double-digit growth during our fourth quarter in our Salt Life retail doors, as well as through our wholesale channel. We recently announced the opening of five new Salt Life retail stores in Florida, South Carolina, and Alabama. The store openings are expected early next year as we gear up to meet the continued strong demand for the brand,” concluded Humphreys.

Fibre2Fashion News Desk (RR)