Delta Apparel Inc. reported its second quarter income jumped 33% following the sale of its Junkfood line in March.
Its net sales for the quarter was down over $5 million from the same quarter a year ago because of sagging Junkfood line sales and impact of The Sports Authority bankruptcy on Delta’s Soffe brand.
Despite the lagging net sales, operating profit for the company was $7.5 million, or 7.2% of sales, compared to $5.9 million, or 5.4% of sales during the same quarter a year ago.
“Our fiscal 2017 second quarter was productive and we completed a number of key initiatives to further improve our business results,” said Robert Humphreys, chairman and CEO of Delta Apparel Inc., in a news release. “Earnings were up nearly 10% even after adjusting for the 11 cents per share gain from the sale of Junkfood.”
Net sales for the first six months of the company’s fiscal year are down by nearly $10 million year-over-year and net income is down approximately $200,000 year-over-year.
Delta’s Salt Life brand saw its gross margins expand on a 10% increase in revenue during the quarter.
“During the quarter, Salt Life experienced strong shipments for initial spring store sets and early indications point to good spring sell-through,” Humphreys said “We continue to focus on connecting directly with our consumers through our Salt Life YouTube channel, social media and digital strategies. Our Salt Life e-commerce business continues to grow, with sales up 42% in the 2017 second quarter and 46% year-to-date.”
Additionally, he said the company has opened a Salt Life apparel store in Huntington Beach, Calif. with plans to open two new East Coast locations over the next six months.