Delta Apparel posts Q2 loss
Written on January 25, 2008
Delta Apparel Inc. continued to run in the red in the second quarter of fiscal 2008, following $2 million in costs related to its ongoing restructuring plan.
The Duluth, Ga.-based clothing company (NYSE: DLA) posted a net loss of $2.8 million on $68.8 million in sales, compared with net income of $633,000 on $72.9 million in sales in the second quarter of 2007. Loss per share was 33 cents, compared with earnings of 7 cents a share in the second quarter of 2007.
In the second quarter of fiscal 2008, the company expensed $2 million for excess textile manufacturing costs and start-up costs from the opening of its Honduran textile facility. Delta Apparel reported in July 2007 a restructuring plan that included the closing of its Fayette, Ala., plant, the expensing of excess manufacturing costs with the FunTees integration and the expensing of start-up costs stemming from the opening of its Honduran textile facility advance america cash advance.
"Our new, state-of-the-art textile facility in Honduras began producing first-quality dyed fabric during the quarter, and is on pace to reach our initial goal of producing over 500,000 pounds of fabric per week in our fiscal fourth quarter," said Robert W. Humphreys, Delta Apparel president and CEO. "This facility should provide our activewear business with lower cost production to drive enhanced profitability in the near future. Despite the slowing retail environment, we achieved sales growth in both of our retail-ready businesses by penetrating new markets and establishing additional doors for our products."