By Daniella Parra
Activewear and lifestyle apparel provider Delta Apparel, Inc. (NYSE: DLA) posted strong sales, particularly in its Salt Life segment, for the quarter ending in June.
Net sales of $126.9 million in the fiscal third quarter represented a 7% increase from a year earlier, led by a 30% increase in sales for the Salt Life segment. The company increased the number of Salt Life retail locations by four, and has already achieved its goal of 20 retail locations for the beach clothing brand by the end of 2022.
Sales in the Delta Group segment, the company’s largest, grew 3% to $106 million in the third quarter from a year earlier.
Meanwhile, gross margin dipped slightly to 24.2%, from 25.5% in the year prior. Net income was $6.2 million, or $0.88 per diluted share, compared to prior year net income of $8.2 million, or $1.14 per share.
“Our continued growth in the face of economic headwinds validates our investment in Salt Life’s retail footprint,” Chairman and Chief Executive Officer Robert W. Humphreys said in a statement. “This investment combined with our growth in the wholesale channel and updated ecommerce site is allowing us to deliver a strong omnichannel shopping experience to our end consumers.”