Lower Q2 sales at Delta Apparel
US-based branded clothing and activewear manufacturer Delta Apparel, Inc. has posted a decline in sales during its second quarter ended December 29.
Net sales for the three-month period were $68.8 million compared with $72.9 million in the prior-year quarter. Net loss for the quarter was $2.8 million compared with net income for the same period last year.
The activewear segment, which comprises the Delta and FunTees businesses, reported sales of $41.1 million for the three-month period, a 12.7% decrease compared with the prior-year quarter. The decrease has been attributed to lower FunTees sales.
President and CEO, Robert Humphreys, says: " Our new, state-of-the-art textile facility in Honduras began producing first-quality dyed fabric during the quarter, and is on pace to reach our initial goal of producing over 500,000 pounds of fabric per week in our fiscal fourth quarter.
“This facility should provide our activewear business with lower cost production to drive enhanced profitability in the near future.”
The company is expecting sales of between $84 million and $88 million in the third quarter, while net sales for the year are expected to fall between $325 million and $340 million.
