Salt Life Group was a $10.3m net sale increase compared to the prior first quarter results whilst net sales in the Delta Group declined to $69.6m. Credit: Shutterstock

Chairman and CEO of Delta Apparel Bob Humphreys mentioned that the company’s efforts to restructure, which involved substantial workforce downsizing and withdrawing from operations in Mexico, have resulted in $20m in labour savings annually.

Despite reducing its overall debt by 22% and inventory levels by 24% year-over-year, the company encountered slow demand in its activewear division and inventory constraints.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Humphreys explained that while many Delta Apparel customers have de-stocked to more normalised inventory levels, “the activewear supply ecosystem as a whole still has some ground to cover to return to pre-pandemic activity levels.”

Fishing apparel brand Salt Life saw a $10.3m net sale increase compared to last year’s first quarter results, while net sales in the Delta Group overall declined to $69.6m.

Delta also reported positive developments, such as the expansion of the Salt Life brand, fuelled by direct-to-consumer and online sales channels, as well a possible sale of this successful brand.

The company announced the potential move back in October, when it said it was conducting a “thorough review of strategic options” following an unsolicited purchase offer for the Salt Life brand.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Additionally, Delta Apparel is currently in the process of selling its North Carolina headquarters and has already completed a sale and leaseback arrangement for its distribution centre in Tennessee.

Key results from Delta Apparel Q1:

  • Net sales were $79.9m down from $107.3m the previous year.
  • EBITDA was reported as $1.3m.
  • Net loss increased to $8.5m.

In Q1, gross margins fell to 10.9%, with the operating loss rising from $2.6m to $4.9m. The adjusted operating loss stood at $2.8m.

Humphreys added: “With the challenging start to our fiscal year and demand across most of our markets generally expected to be flat relative to last year, we remain tightly focused on managing liquidity and working capital across all aspects of our business and will continue to look for areas where we can generate efficiencies and further streamline operations.”