NYSE listed clothing retailer, Delta Apparel said its net sales dropped 6.23 per cent from the previous fiscal year for the fiscal year ended September 27, 2014.
Net sales slipped $452.9 million for fiscal 2104 as against $483.0 million in the prior fiscal year.
Its net income, adjusted for the $4.0 million pre-tax impact of strategic initiatives, was $1.5 million or $0.19 per diluted share versus $6.2 million, or $0.74 per diluted share in fiscal 2013.
Without adjustment for the impact of strategic initiatives, the retailer experienced a net loss for the fiscal year ended September 27, 2014, of $1.0 million, or $0.12 per diluted share.
Delta Apparel reported fourth quarter of 2014 sales at $114.9 million, down from $122.6 million in the corresponding quarter of fiscal 2013.
Adjusted net income for the fourth quarter of 2014 stood at $1.7 million, or $0.22 per diluted share, up from $0.6 million, or $0.07 per diluted share, in the prior year fourth quarter.
Without adjustment for the impact of strategic initiatives, Delta Apparel recorded a net loss for the fourth quarter of 2014 at $0.8 million, or $0.10 per diluted share.
In the fourth quarter, Delta initiated a reorganization of its administrative structure at all levels to streamline decision-making and reduce duplicative and excess fixed costs.
It also began evaluating other initiatives focused on improving net profitability in the face of this continued marketplace weakness.
According to Delta, this is in response to prolonged sluggishness within the apparel markets, and to better position the company as market conditions improve.
CEO Robert Humphreys stated, “With minor exceptions, we have streamlined our workforce and completed the planned reductions, effectively delayering the management structure.”
“We recorded $2.2 million of severance-related expenses due to this initiative in the fourth quarter and anticipate recognizing $6 million of the expected $7 million in annualized savings in fiscal 2015.”
Delta Apparel also began a comprehensive rationalization analysis of its manufacturing operations, product lines and sales channels intended to refocus its capital and other resources.
The retailer has moved certain production into its lower cost facilities and anticipates further efforts of this nature as it progresses through fiscal 2015.
It is also currently in the process of implementing new information systems that should further streamline it’s our operations and better support its customer needs.
During the fourth quarter, Delta Apparel recorded $1.8 million in expense associated with these initiatives. (AR)
