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Preliminary sales of $72 million in the third quarter; June’s sales account for about 90% of last year’s results.
PRELIMINARY net sales of DTG2Go in the third quarter were down 30% to last year
Salt Life Group’s June sales expansion of 7% over the past year
GREENVILLE, SC, July 9, 2020 (GLOBE NEWSWIRE) – Delta Apparel, Inc. (NYSE American: DLA), a leading provider of sportswear and fundamental lifestyle products, today announced the initial effects for its third fiscal 2020 quarter closed on June 27, 2020 and provided a commercial update.
Robert W. Humphreys, president and CEO of the company, said: “The dynamics we experienced in our business segments in the third quarter are encouraging and further validate the strategic benefits of Delta Apparel, adding our diversified sales channels, our broad and strong emotional connection to our Salt Life and Soffe brands with consumers. Over the past few months, we have noticed that orders are increasing and come from a broader base of sales channels.”
The Company expects net sales for the third quarter of fiscal 2020 to be approximately $72 million, or 60% of net sales of $119.3 million in the previous year’s period. The company’s monthly sales accelerated sequentially in the third quarter, from April sales to 32% of last year’s titles to June sales, tracking about 90% of last year’s titles.
Third quarter sales functionality included a 32% sales expansion in the DTG2Go virtual printing business, driven by the integration of several new consumers into the DTG2Go platform, as well as the increased print volume of existing consumers. As announced in the past, the company plans to expand its virtual printing business with the opening of a new virtual printing and distribution facility built into Phoenix, Arizona, in August, that combines DTG2Go’s virtual printing features with Delta Apparel’s attire offering. The company also plans to increase its fleet of virtual printers by 10%.
Mr. Humphreys commented: “In our DTG2Go business, the benefits and uniqueness of our fully incorporated and diversified geographic style increase volume with existing consumers, while attracting new consumers to our full virtual printing platform. We are extremely happy to continue investing in this fast-growing company that is perfectly located to thrive in the virtual economy.
During the third quarter, direct sales to customers increased particularly for the company, adding e-commerce sales that doubled from last year, driven by sales expansion of more than 140% in Salt Life e-commerce and 80% in the Soffe clientArray
Mr. Humphreys commented: “We enjoyed the direct connection with our unwavering Salt Life and Soffe consumers through social media channels and on our e-commerce sites, as well as in our retail stores, all of which reopened safely. It’s also promising that Salt Life Group’s net sales will return to an average single-digit expansion in June, when our business partners began reopening at the time of the quarter.
“The third quarter was unprecedented for our nation, our industry, and our society,” Humphreys continued. “I am very proud of our groups in all our activities for their unwavering determination, pandemic and significant progress that we have made together to serve our diverse clientele. Although our outdoor production operations in the United States were closed during the quarter high, We are encouraged that until the end of June we have resumed production at all of our production facilities. In accordance with local regulations, we have strict protection protocols in place and we will make paints to reduce the short-term capacity for the protection of our painters and align our production grades with planned long-term activities.
The Company expects to record approximately $24 million in one-time expenses in its third quarter of fiscal year 2020, relevant to the effects of the COVID-19 pandemic. These come with the prices of reducing its production activities and expanding reserves similar to the biggest dangers in the market as the United States continues to recover.
Mr. Humphreys concluded: “We took a look to provide a more complete review of our third quarter effects when we asked for effects on Thursday, July 30, 2020. Our business is recovering much faster than we originally expected, and we expect this momentum. to continue. The matrix allows us to return to profitability our September quarter. Each month, our liquidity continued to improve, resulting in a build-up of nearly 50% in our money flow and the availability of our line of credit in June compared to March levels. I remain convinced that Delta Apparel is in a strong monetary position to get more powerful out of this pandemic, and we are able to grow our business profitably”.
Conference call for the third quarter of fiscal year 2020 Fiscal 2020 Full and final financial results for fiscal year 2020 The third quarter ended June 27, 2020 will be released after the market closes on July 30, 2020. 4:30 p.m. And that day, the company will also make a call to the convention with superior control to talk about its monetary effects and business prospects. Corporate invitations allow you to register for the call by calling 800-430-8332. If you call from the United States, call 323-289-6581. The live broadcast of the convention call will be held in www.deltaapparelinc.com. Stop on the online page at least 15 minutes in advance to log in to the teleconvention webcast and download any required software. The call will be repeated until August 30, 2020. To access the replay of the phone, participants must dial the toll-free number 844-512-2921. International callers can call 412-317-6671. The access code for repetition is 1181871.
About Delta Apparel, Inc. Delta Apparel, Inc., as well as its operating subsidiaries, DTG2Go, LLC, Salt Life, LLC and MJ Soffe, LLC, is a vertically incorporated foreign dress company that designs, manufactures, supplies and markets a diversified portfolio of sports and lifestyle attire under the leading Salt Life®, COAST®, Soffe® and Delta brands. The company is a market leader in the printing and virtual execution industry directly in attire, bringing DTG2Go’s generation and innovation to its customers’ home chain. The company specializes in selling casual and sports products across a variety of channels and distribution levels, adding outdoor and sports retailers, independent and specialized retailers, the most sensitive retailers and mid-tier retailers, mass merchants and online retailers. U.S. Army, and through its cross-company e-commerce sites. The company’s products are also intended for consumers directly on their websites in www.saltlife.com, www.coastattire.com, www.soffe.com and www.deltaattire.com, as well as in their branded retail stores. . The company’s operations are located in the United States, Honduras, El Salvador and Mexico, and employ approximately 8,400 people worldwide. Additional company data can be obtained at www.deltaattireinc.com.
Caution with respect to forward-looking statements This press release may involve “prospective” statements involving dangers and uncertainties. Any number of points may also cause actual effects to differ materially from expected or expected effects, including but not limited to volatility and uncertainty in the costs and availability of cotton and other raw materials; General economic situations in the United States and around the world; Competitive situations in the clothing industry; Restrictions on our ability to borrow capital or pay our debt; The deterioration of the monetary position of our customers and suppliers and adjustments in the operations and methods of our customers and suppliers; Changing the customer’s personal tastes or tendencies, our ability to effectively open and operate new retail stores; adjustments in economic, political or social skills at our offshore sites; Significant interruptions in our manufacture, distribution or other operations; our ability to cook and retain key leaders; Significant adjustments to our effective interest rate rate adjustments by extending our variable-rate debt legal responsibilities; The ability to raise more capital The ability to grow, to achieve synergies and to achieve the expected benefit of acquisitions; Volatility and uncertainty in energy, fuel and other costs; Significant interruptions in our data systems compromise the security of our data; Major litigation in domestic or foreign jurisdictions; negative withdrawals, claims and advertising related to liskill product issues; The ability to protect our trademarks and other high-value properties; and other points set out in the “Risk Factors” involved in our latest Annual Report on Form 10-K submitted to the Securities and Exchange Commission and updated in our forthcoming quarterly reports filed on Form 10-Q. Unless required by law, Delta Apparel, Inc. expressly disclaims any legal liability to update such forward-looking statements to reflect occasions or cases after the date of this press release or to reflect the occurrence of unforeseen occasions.
Company Contact:
Deborah Merrill, 864-232-5200 x6620 [email protected]
Investor Relations and Media Contact: ICR, Inc.
Investors: Tom Filandro, 646-277-1235
Media: Jessica Liddell, 203-682-8208 [email protected]