The apparel company’s net income increased by 313 per cent at $3.6 million, or $0.51 per diluted share in the Q1 FY22 compared to $0.9 million, or $0.13 per diluted share for the same period in the prior year. Furthermore, Delta Apparel Inc.’s operating income increased to $5.9 million, or 5.3 per cent of sales, compared to the prior year first quarter profit of $3.1 million, or 3.3 per cent of sales.

Delta Apparel Inc. also reported improved inventory levels with its net inventory of $183.1 million as of December 2021, an increase of $21.4 million from September 2021 and $34.6 million from December 2020.

The company’s gross margin was 20.8 per cent contracting 60 basis points from 21.4 per cent in the first quarter of the prior year, while the company spent approximately $1.8 million on its capital expenditure during the Q1 FY22 compared to $6.9 million during the same period in the prior year.

“We delivered strong first quarter results that not only exceeded our expectations but reached a first quarter record for our company with sales surpassing $110 million. Our bottom-line results were also impressive as we registered EPS growth of nearly 300 per cent,” said Robert W. Humphreys, the company’s chairman and chief executive officer.

Humphreys continued, “Today’s retail environment remains highly fluid and Delta Apparel’s proven track record of success anchored on our unique business model servicing diversified sales channels using our vertically-integrated, flexible manufacturing platform positions us particularly well for many years of profitable growth. Our manufacturing output continues to reach record levels and we remain on track to bring additional capacity online during the second half of 2022 to meet our customers’ demand.

“I remain incredibly proud of our entire organization for their unwavering dedication to servicing our customers each and every day. We are off to an excellent start in the new fiscal year, and we continue to believe our solid financial position and strong cash flows will allow us to fund our growth initiatives while also providing liquidity for other actions to increase shareholder value,” concluded Humphreys.

Delta Apparel repurchased 74,232 shares for 2.1 million, summing the total amount repurchased to $54.6 million during Q1 FY22 under its previously announced share repurchase programme.

The company had $5.4 million of remaining repurchase capacity under its existing authorisation, at the end of Q1 FY22, as mentioned in a press release.

Fibre2Fashion News Desk (SF)