Delta Apparel’s first quarter net sales were 79.9 million dollars compared to prior year period net sales of 107.3 million dollars.
While the Salt Life Group segment net sales were 10.3 million dollars, up slightly compared to the prior year period, net sales in the Delta Group segment declined to 69.6 million dollars.
Commenting on the results, Delta Apparel chairman and CEO Robert W. Humphreys said in a statement: “Many of the unfavourable market dynamics we saw across our business and the activewear industry last year persisted during our first quarter. We continued to take decisive action to improve our balance sheet and streamline our cost structure and operations.”
Gross margins for the quarter dropped to 10.9 percent, operating loss increased from 2.6 million dollars to 4.9 million dollars, while adjusted operating loss was 2.8 million dollars.
EBITDA was a loss of 1.3 million dollars and adjusted EBITDA was positive at 853 thousand dollars. The company’s net loss increased to 8.5 million dollars or 1.22 dollars per share and adjusted net loss was 6.6 million dollars or 94 cents per share.
“With the challenging start to our fiscal year and demand across most of our markets generally expected to be flat relative to last year, we remain tightly focused on managing liquidity and working capital across all aspects of our business and will continue to look for areas where we can generate efficiencies and further streamline operations,” added Humphreys.