Delta Apparel Reports Fiscal 2014 Second Quarter and Six Months Results
Delta Apparel, Duluth, Ga., recently reported its 2014 second quarter results. For the fiscal 2014 second quarter ended March 29, 2014, net sales were $114.5 million versus $120.1 million for the comparable 2013 period. The 5 percent sales decline was primarily due to unseasonably cold weather throughout the country and the weak retail environment prevailing for most of the quarter.
For the first six months of fiscal 2014, net sales were $214.5 million compared with $226.8 million in the prior year period. Delta Apparel experienced a net loss of $2.4 million for the first six months 2014, compared with net income of $1.7 million in the prior year period.
Operating margins in the branded segment improved 160 basis points from the prior March quarter, but this improvement was more than offset by depressed margins in the basics segment from lower selling prices on basic undecorated tees coupled with higher raw material costs. This resulted in a net loss for the 2014 second quarter of $763 thousand compared with net income for the prior year quarter of $1.6 million.
"While we knew the undecorated tee market was going to be challenging, a heavier promotional environment driven from continued softness in demand at the start of the spring selling season made it even more challenging than expected," said Robert W. Humphreys, chairman and CEO of Delta Apparel. "Weak demand also caused deferred call-outs and slower replenishment orders for our branded products. The unseasonable weather that prevailed across the country played a significant part in slow retail sales, but the continuing sluggish economy and its negative effect on consumer purchasing power was also a major factor."