The Delta business incurred approximately $0.7 million in bad debt expense due to the non-collection of sales from one customer. Operating income for the twelve months ended July 3, 2005 was $10.0 million compared to $7.6 million in the prior year. The improvement in operating income resulted from the gain on the sale of the Company's Edgefield, South Carolina yarn spinning facility, offset partially by higher distribution expenses from the transition of the Tennessee distribution to a new facility and the opening of the new distribution facility in Cranbury, New Jersey.
The Soffe business contributed $25.6 million in sales for the fourth quarter of fiscal year 2005, a $5.5 million decrease, or 17.7 percent, from sales in the prior year's quarter. Sales in the fourth quarter of the prior year were an all-time record for the Soffe business, and included 14 weeks of shipping, as compared to the 13 weeks of shipping in the fourth quarter of fiscal 2005.
The sales decline is also attributable to a reduction in retail re-orders shipped during the fourth fiscal quarter. Sales for the 2005 fiscal year were $84.6 million, and increase of $13.9 million, or 19.7 percent, from the prior year. Operating income for the quarter ended July 2, 2005 decreased from $6.1 million to $4.4 million due to the lower sales volume and shift in the mix of products sold during the quarter. For the year, operating income was $10.4 million, an 8.2 percent increase from the prior year level of $9.6 million.
marketing@alchempro.com
