Apparel manufacturer, Delta Apparel, Inc. has reported a drop in sales in the fourth quarter ended July 2, 2005. Net sales fell to $66.3 million from $72.9 million recorded in the prior year's fourth quarter. Net income for the fiscal quarter was $3.2 million compared with the prior year's level of $5.4 million.

However, there was more positive news for the full year results as net sales increased 9.6% to a record $228.1 million compared with $208.1 million in the prior year and net income for fiscal year 2005 increased 15.5% to $11.2 million.

The company has also announced, in a separate release, that it completed the purchase of substantially all of the assets of privately held Junkfood Clothing. The purchase price consists of $20 million of cash, a $2.5 million seller promissory note, and contingent payments with respect to each of the four fiscal years following closing, payable if certain performance targets are met. Delta Apparel financed the cash portion of the purchase price through an amendment to its asset-based secured revolving credit facility.

Junkfood Clothing is a t-shirt manufacturing company owned by designers Natalie Grof and Blaine Halvorson.