The Salt Life group segment net sales, however, grew by over 16 per cent to $19 million in Q2 FY23, compared to the prior year's Q2 net sales of $16.4 million. Meanwhile, the net sales in the Delta group segment were $91.3 million, compared to $115.3 million in the prior year's second quarter.

The selling, general, and administrative expenses were $19.3 million in Q2 FY23, or 17.5 per cent of sales, compared to $19.7 million, or 15 per cent of sales, in Q2 FY22. The increase in selling, general, and administrative as a percentage of sales was driven by the further expansion of Salt Life's branded retail store footprint and the deleveraging effect of overall lower sales relative to the prior year period, the company said in a press release.

Delta Apparel's operating income declined YoY from $14.3 million, or 10.9 per cent of sales, to an operating loss of $5.4 million, or 4.9 per cent of sales. Additionally, the net income declined from $10.1 million, or $1.44 per diluted share, to a loss of $7 million, or $1 per diluted share.

Delta Apparel's net inventory, as of April 1, 2023, was $243.2 million, a sequential decrease of $15.7 million from December 2022, and a YoY increase of $45.5 million from March 2022. The company spent approximately $2 million on capital expenditures during the second quarter, compared to $10.5 million during the prior year's second quarter.

“Our second quarter performance highlights the durability and inherent advantages in our multi-market strategy during uneven demand cycles. We achieved double-digit sales growth across three of our five go-to-market channels and saw strength in areas where we provide decorated ‘consumer ready’ products directly to end-users or close to the point-of-sale,” said chairman and chief executive officer Robert W Humphreys.

Fibre2Fashion News Desk (DP)