Delta Apparel Inc has reported financial results for its fiscal second quarter ended December 31, 2005.
The company's results for the fiscal 2006 second quarter include the operations from Junkfood Clothing Company which was acquired on August 22nd 2005.
For the second quarter of fiscal 2006, net sales rose 17.3 percent to a record $57.7 million compared to $49.2 million in the prior year quarter.
Gross margins improved 970 basis points to 31.7 percent compared to 22 percent in the prior year second quarter and improved 80 basis points from the first fiscal quarter of 2006.
Robert Humphreys, President and CEO, said, "We are very pleased to have achieved record sales, increased margins and record earnings in our second fiscal quarter. Our Soffe business was on target for the quarter, and demand continues to be strong for Junkfood products. Although the total sales in our Delta business did not meet our expectations, we achieved significant margin improvements and believe we will see sales growth in this business in the second half of the year."
Humphreys further added, "We have completed the move to our new West Coast distribution facility in the Delta business with no shipping disruptions and we will be consolidating Soffe distribution and the Intensity Athletics operations into the same facility in the upcoming quarter to better serve our customers.”
For the third fiscal quarter ending April 1, 2006, the company expects sales to be in the range of $66 to $70 million and basic earnings to be in the range of $0.29 to $0.33 per share.
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