US lifestyle and activewear company Delta Apparel has reported record sales and widening profits in the second quarter of the year despite supply chain challenges.
For the three months to April 2, net sales increased by 21 percent year-over-year to 131.7 million dollars, with sales in its Delta Group segment up 22 percent to 115.3 million dollars, and sales in its Salt Life segment up 14 percent to 16.4 million dollars.
On a consolidated basis, the company’s gross margin improved by 270 basis points to 25.5 percent compared to 22.8 percent a year earlier. It said this was largely driven by increased selling prices and production efficiencies.
Operating income increased to 14.3 million dollars compared to 7.6 million dollars a year earlier, while net income came in at 10.1 million dollars, up from 4.4 million dollars.
“I am continuously impressed by the resiliency of our organization and the strong financial performance we have seen as a company while faced with labor shortages, inflationary pressures, and supply chain disruption,” CEO and chair Robert W. Humphreys told investors.
He continued: “We are meeting our internal goals and are positioned well financially to further invest in our growth while providing cash-flows for other strategic initiatives.”