Delta Apparel (DLA) Reports Q4 EPS of $0.53

Delta Apparel (NYSE: DLA) reported Q4 EPS of $0.53, versus ($0.10) reported last year. Revenue for the quarter came in at $120 million, versus $114.9 million reported last year.

Regarding the great progress made by the Company during the year, Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer, commented, “We saw net sales growth in the third and fourth quarters and gross margins expanded sequentially through the year and year-over-year. Operating income was up substantially and we achieved net earnings totaling $1.08 per share for the final two quarters of our fiscal year. These improvements are supported by various initiatives during the year that have generated a growth trend we see continuing in fiscal 2016 despite persistent softness in the retail marketplace. Simply put, we have transformed Delta Apparel into a company that can grow profitably even in difficult retail environments. We did this by making difficult choices and taking deliberate action as we exited fiscal 2014.”

Mr. Humphreys commented further that “We sold The Game in a transaction that worked well for us and for the buyer. We then focused on more strategic areas of our business that have the greatest potential for growth. We expanded our screen-printing operations in El Salvador to service our growing private label and full package businesses. This contributed greatly to the 46% growth in our private label business in the fourth quarter. We began expanding our Honduran textile operations and added new equipment that should reduce our reliance on purchased open-width fabric in fiscal 2016. In addition to now being able to produce open-width product, we anticipate savings of $0.5 million in fiscal 2016 and annual savings of over $2 million going forward from this initiative. We made further investments in our ecommerce business and strengthened Art Gun with the purchase of new equipment. In the fourth quarter we completed the move of Salt Life’s distribution center to Fayetteville, North Carolina. With the disruption from this move behind us and the continuing strong demand for Salt Life products, we anticipate a return to historical growth rates in that business.

“Looking ahead, we believe there will be a continuation of the soft retail environment but, regardless, we believe we are positioned to further improve our operating results in 2016. Our fixed cost structure is now lower and we will have a full fiscal year to reap the anticipated benefits of the actions we took in the past year. We are excited about introducing new performance and lifestyle products across our business units for Spring that we believe will enhance our current offerings to consumers. These steps give us encouragement that we should see another year of sales growth and profit improvement for Delta Apparel in fiscal year 2016.”

For earnings history and earnings-related data on Delta Apparel (DLA) click here.

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