Manufacturer and distributor of branded and private label activewear apparel Delta Apparel, Inc. has reported record financial results for its fiscal second quarter ended December 31, 2005. The company's results for the fiscal 2006 second quarter include the operations from Junkfood Clothing Company which was acquired on August 22, 2005.

For the second quarter of fiscal 2006, net sales rose 17.3% to a record $57.7 million compared with $49.2 million in the prior year quarter.

The Activewear Apparel segment, which includes the Delta Apparel business, reported sales of $28.5 million compared with $33.9 million in the prior year quarter. The decline in sales was due to lower sales volume in the company's private label channel and in its long-sleeve products, along with lower average selling prices. Operating margins for the three months ended December 31, 2005 improved 200 basis points driving an increase in operating income to $2.2 million compared with $1.9 million in the prior year, primarily related to less expensive raw materials and lower manufacturing costs flowing through cost of sales. Additionally, the business recorded a $0.4 million gain on the insurance recovery associated with inventory damaged during Hurricane Katrina.

The Retail-Ready Apparel segment, which includes the Soffe and Junkfood businesses, reported a sales increase of 90.6% to $29.2 million for the second quarter of fiscal year 2006 compared with $15.3 million in the prior year. The sales increase was primarily driven by the acquisition of Junkfood Clothing Company.