Delta Apparel Inc. Reports Unaudited Consolidate Earnings Results for the Second Quarter and Six Months Ended December 31, 2011; Revised Earnings Guidance for the Full Year Ending June 30, 2012; Provides Effective Tax Guidance for the Third Quarter and Fourth Quarter of Fiscal 2012
January 26, 2012 at 09:15 pm
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Delta Apparel Inc. reported unaudited consolidate earnings results for the second quarter and six months ended December 31, 2011. For the quarter, the company has posted net sales of $105,486,000 against $104,722,000 a year ago. Operating loss was $19,989,000 against operating income of $2,625,000 a year ago. Net loss was $13,592,000 or $1.61 diluted per share against net income of $1,416,000 or $0.16 diluted per share a year ago. The net loss was due primarily to the inventory markdown in the basics segment and lower than anticipated demand from retailers stemming from price increases on branded products necessitated by higher cotton costs. Capital spending during the quarter was $1,700,000
For the six months, the company has posted net sales of $229,009,000 against $212,639,000 a year ago. Operating loss was $13,289,000 against operating income of $5,583,000 a year ago. Net loss was $9,178,000 or $1.09 diluted per share against net income of $3,066,000 or $0.35 diluted per share a year ago.
Due to the effect of the inventory markdown and selling price discounts on the second quarter and first six months, the company has reduced its fiscal year 2012 outlook for sales and earnings. For the fiscal year ending June 30, 2012, the company anticipates net sales to be in the $480 to $500 million range and earnings to be in the range of $0.50 to $0.60 per diluted share.
The company expects its effective tax rate in the third and fourth quarters to be approximately 24%.
Delta Apparel, Inc. is a vertically integrated, international apparel company. The Company designs, manufactures, sources, and market a diverse portfolio of core activewear and lifestyle apparel products under its primary brands of Salt Life, Soffe, and Delta. It operates through two segments: Delta Group and Salt Life Group. The Delta Group segment consists of its business units primarily focused on activewear styles: DTG2Go and Delta Activewear. The Salt Life Group segment comprises its Salt Life business, which is built on the authentic, aspirational Salt Life lifestyle brand. Delta Activewear is a preferred supplier of activewear apparel to regional and global brands, as well as direct-to-retail and wholesale markets. It also specializes in selling casual and athletic products through a variety of distribution channels and tiers. Its On-Demand DC digital solution provides retailers and brands with immediate access to utilize DTG2Goâs network of print and fulfillment facilities.
Delta Apparel Inc. Reports Unaudited Consolidate Earnings Results for the Second Quarter and Six Months Ended December 31, 2011; Revised Earnings Guidance for the Full Year Ending June 30, 2012; Provides Effective Tax Guidance for the Third Quarter and Fourth Quarter of Fiscal 2012