GSA Daily Staff Report
Published April 26, 2010

Delta Apparel Inc. on Friday reported 26% growth in sales, along with a 143% increase in per share earnings for its fiscal third quarter ended March 27.

The Greenville-based company said its net sales reached a record $107.9 million for the quarter, an increase of $22.3 million from the prior-year quarter. Gross margin were up from 19.6% to 23.3%.

Net income for the quarter was $2.96 million, or $0.34 per diluted share, compared to $1.16 million, $0.14 per diluted share, in the prior year third quarter.

“We believe the ability to achieve 26% sales growth on top of a 13.7% sales gain in the prior year quarter, especially in today’s marketplace, validates our strategy of having diversified distribution channels, broad product offerings, a portfolio of brands and extensive license agreements,” said Chairman and CEO Robert Humphreys.

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The company raised its guidance for the 2010 fiscal year ending July 3. Delta Apparel previously said it expected net sales in the range of $395 to $400 million. Based on the stronger than anticipated third quarter sales, the company said it expects net sales to be in the range of $400 million to $405 million for the 2010 fiscal year. This compares to fiscal year 2009 net sales of $355.2 million. The company reiterated its expectations for earnings to be in the range of $1.20 to $1.30 per diluted share compared to $0.76 per diluted share in fiscal year 2009.

“Throughout fiscal year 2010 we have been successful in growing market share and improving our bottom line, despite less than ideal conditions,” Humphreys said. “While there is still uncertainty and risk regarding the recovery of the general economy, we believe we are well positioned for continued sales growth and earnings expansion in the years ahead.”

Delta Apparel is an international design, marketing, manufacturing and sourcing company of branded and private label apparel and headwear. Its operating subsidiaries include M. J. Soffe, Junkfood Clothing Company, To The Game and Art Gun.

Delta Apparel stock was up 26 cents in early trading on Nasdaq today at $17.23 per share.