Delta Apparel’s first-quarter net sales were US $ 79.9 million, down from US $ 107.3 million in the same period last year.
While net sales in the Salt Life Group sector increased marginally year on year to US $ 10.3 million, net sales in the Delta Group segment fell to US $ 69.6 million.
Delta Apparel chairman and CEO Robert W. Humphreys stated, “Many of the unfavourable market dynamics we saw across our business and the activewear industry last year persisted during our first quarter. We proceeded to take strong steps to strengthen our balance sheet and reduce our cost structure and operations.”
Gross margins fell to 10.9 per cent in the quarter, while operating loss climbed from US $ 2.6 million to US $ 4.9 million, with adjusted operating loss of US $ 2.8 million.
EBITDA was down US $ 1.3 million, while adjusted EBITDA was up US $ 853,000. The company’s net loss climbed to US $ 8.5 million, while adjusted net loss was US $ 6.6 million.
“With a difficult start to our fiscal year and demand across most of our markets generally expected to be flat relative to last year, we are intensely focused on managing liquidity and working capital across all facets of our company, and we will continue to look for areas where we can produce savings and further simplify processes,” Humphreys added.