Delta Apparel sales increase to a record $62.7 million
09/11/2006
Delta Apparel Inc.’s net sales for the three months ended September 2006 increased 3.5% to a fiscal first quarter record of $62.7 million compared with $60.6 million in last year’s first quarter. Gross margins for the quarter fell to 27.7%, compared with 30.9% in the same period last year, and net income reached $2.2 million compared with $3.4 million.
The activewear segment, which includes the Delta Apparel business, reported sales of $30.3 million for the three months ended September - a 2.6% increase on the same quarter last year. The rise in sales was primarily due to an increase in private label volume, offset partially by lower prices across the basic tee shirt categories. More expensive raw material prices and higher transportation costs, offset partially by improved manufacturing efficiencies, drove a decrease in operating income to $0.2 million compared with $2.1 million in the corresponding 2005 quarter.
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