For the first fiscal quarter ended December 27, 2014, net loss climbed to $4.2 million or $0.53 per diluted share from a net loss for the prior year quarter of $1.6 million or $0.20 per share at Delta Apparel.
“While lower sales were mitigated by improved margins in all but one of our business units and by overall lower general and administrative costs, we experienced a net loss,” Delta Apparel said.
In the first quarter of fiscal 2015, NYSE-listed Delta Apparel reported net sales of $93.4 million versus $100.0 million for the comparable fiscal 2014 period.
According to the apparel marketer, continued solid growth in Salt Life and on all of the company’s ecommerce sites was offset by lower sales in other business units.
Selling, general and administrative expenses for the fiscal 2015 first quarter were $18.5 million, down 6.6 per cent from $19.8 million in the prior year quarter.
According to Delta, the improvement resulted from the cost restructuring completed in the prior quarter and continued tight spending controls, offset to some degree by higher marketing expense.
Despite lower sales in the reporting quarter, selling, general and administrative expenses were 19.9 per cent of revenue, providing further evidence of the lower fixed cost structure it has implemented.
Net sales for the company’s basics segment reached $57.7 million in the quarter under review, also down 8 per cent from $62.5 million in the prior year period.
“The decline stemmed from lower prices on reduced unit sales in the undecorated tee business, which was impacted by continued price discounting resulting from weak demand in the marketplace,” it added.
“New programs were won in the private label business that should drive strong sales growth as the year unfolds,” the apparel marketer informed.
In the first quarter of fiscal 2015, net sales in the branded segment touched $35.7 million compared with $37.5 million in the quarter from a year earlier, a decline of 5 per cent.
Salt Life continued its excellent performance with 15 per cent growth in what is typically its weakest quarter.
Delta said Salt Life currently has a substantial spring order backlog indicating stronger revenue growth rates in upcoming quarters.
CEO Robert Humphreys said, “This first quarter decline in net sales should not be the yardstick by which the rest of the year is measured.
“We believe that most areas of our business are pointing to growth in subsequent quarters, particularly in the second half of the fiscal year,” he too added.