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US' Delta Apparel expects 20% sales growth in Q2FY22

18 Apr '22
3 min read
Pic: Shutterstock
Pic: Shutterstock

Delta Apparel, a leading provider of core activewear and lifestyle apparel products, is expecting net sales for the second quarter of 2022 to be nearly $130 million, representing a 20 per cent increase compared to the prior year second quarter result of $108.6 million, with double-digit sales growth in both the Delta Group and Salt Life Group segments.

“Consumer demand for Delta Apparel’s brands, including Salt Life, Delta and Soffe products, remains strong with our Delta Group having an outstanding sales quarter in both our Activewear and DTG2Go businesses. Activewear growth was driven by higher unit sales, increased value-added services and our continued ability to update our pricing in the marketplace to offset higher input cost. Additionally, our DTG2Go digital print business delivered an increase in units shipped over the prior year second quarter driven by our newly developed digital first technology. We continue to invest in our digital print ecosystem with new state-of-the-art print equipment, and our digital first technology is now operating in three of our eight DTG2Go locations and will be soon expanding to a fourth location,” Robert W Humphreys, chairman and chief executive officer, said.

The Salt Life brand also outperformed the prior year second quarter, despite continuing capacity constraints resulting from inventory shipping delays. The wholesale channel continued to demonstrate strength in the first half of 2022, and the Salt Life branded retail footprint was further expanded with the opening of two new locations during the quarter in Sarasota and Fort Lauderdale, Florida, bringing the number of retail doors to 17 locations across five states. The recent Salt Life retail location openings have surpassed our internal sales expectations, continuing to validate the strength of the Salt Life brand and our go-to-market strategy.

“We are continuing to see the competitive advantage of our vertical supply chain servicing our five focused go-to-market strategies and are currently enjoying strong demand across all the channels we serve. We recently installed additional manufacturing equipment to increase our capacity across our production network. Furthermore, we are consistently investing in manufacturing technology to improve our production efficiencies and reduce our environmental footprint, while finding new ways to service our customers in what remains a highly fluid supply chain environment. Demand for our products across both our Delta Group and Salt Life Group segments remains strong and we see further opportunities for future growth. We look forward to providing more information on our March quarter results and business outlook in early May,” Humphreys explained.

Fibre2Fashion News Desk (RR)

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