Delta Apparel, Inc. (PPAI 188431, S9) has announced preliminary results for its 2020 fiscal year fourth quarter. The Greenville, South Carolina, supplier anticipates overall net sales for the quarter to be approximately $116 million, up about eight percent compared to $108 million in the prior-year period, with growth in each of its business units. The Delta Group and Salt Life Group segments are expected to report fourth quarter year-over-year net sales growth of approximately eight percent and 12 percent, respectively. The company also expects to report an expansion of operating income in the fourth quarter compared to the prior year, exceeding its prior commitment to deliver fourth-quarter profitability on both a reported and adjusted basis.

“In what has remained an unprecedented period for our nation and our industry, we are proud of the strong finish to our 2020 fiscal year,” says Robert W. Humphreys, the company’s chairman and CEO. “Our stellar preliminary fourth-quarter sales results were broad-based with growth in each of our business units. The advantages of the Delta Apparel strategic model with our diversified sales channels and broad geographic footprint, combined with our unique, integrated manufacturing platform, once again contributed to remarkable results this quarter and positions us well for profitable growth into the foreseeable future.”

Humphrey adds, “Our Activewear business increased sales by over five percent, as demand remained strong for our Delta Catalog products. We were particularly pleased with our team’s ability to ramp-up manufacturing quicker than we originally expected to service our private label customers and replenish our catalog inventory levels, allowing growth in both of these channels within Activewear. Consumers continued to actively seek Salt Life and Soffe products across multiple distribution channels with notable sales growth on our Soffe and Salt Life websites of over 80 percent and 30 percent, respectively. The Salt Life branded retail stores produced sales growth of over 120 percent from the prior year driven by same store sales growth combined with new door openings.”

Delta Apparel also reports that its digital print business, DTG2Go, achieved net sales growth in the quarter of nearly 30 percent compared to the prior year, driven by unit growth of approximately 35 percent during the quarter.

“Our DTG2Go business continued to disrupt the industry with our unique on-demand model utilizing our proprietary technology and broad geographic footprint,” says Humphrey. “Customers are seeing the benefits of the seamless supply chain of Delta garments within our on-demand model, with DTG2Go’s usage of Delta Catalog blanks jumping to a new record of approximately 40 percent utilization compared to 20 percent in last year’s fourth quarter and 30 percent during the June quarter. This trend is promising as it creates a more efficient operation, reduces garment costs for our customers and lowers working capital needs in the business. We are transforming the on-demand, fulfillment model, and the new ‘On-Demand DC’ is validation that DTG2Go is at the forefront revolutionizing the supply chain for the retail industry.”