We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Delta Apparel (DLA) Issues Upbeat Q2 Updates on Solid Demand
Read MoreHide Full Article
Delta Apparel, Inc. (DLA - Free Report) issued updates and preliminary net sales for second-quarter fiscal 2022. Management highlighted that sturdy consumer demand for its brands, including Salt Life, Delta and Soffe products was a positive. DLA witnessed an outstanding quarter in both its Activewear and DTG2Go businesses.
Strength in the Salt Life brand and go-to-market strategy also bodes well. The Salt Life brand performed impressively despite persistent capacity constraints, stemming from inventory shipping delays. Second-quarter fiscal 2022 ended Apr 2, 2022, is scheduled to be released on May 3, 2022, after the closing bell.
More Details
Delta Apparel projects net sales of around $130 million for the fiscal second quarter, with double-digit sales increases in the Delta Group and Salt Life Group divisions. Second-quarter sales projection suggests a 20% increase from $108.6 million recorded in the year-ago quarter. Management cited that this sets a new all-time record for the March quarter.
Management is on track with the expansion of the Salt Life brand’s presence. DLA introduced two new locations in Sarasota and Fort Lauderdale, FL, during the same quarter. This brings the number of retail locations to 17. DLA’s wholesale channel exhibited strength during the first half of fiscal 2022.
We note that gains from DLA’s digital first technology have been aiding DTG2Go digital print business for a while, which recorded higher units from the year-earlier quarter’s figure. Management is consistently investing in the digital print ecosystem with the latest state-of-the-art print equipment. The digital first technology is currently operating in three of the eight DTG2Go locations and is likely to expand to a fourth location in the near term. Increased unit sales and value-added services along with the ability to update pricing to offset elevated input cost drove Activewear growth.
Delta Apparel is constantly witnessing robust demand at all its serving channels on gains from its vertically integrated supply-chain model. Recently, management installed additional manufacturing equipment to boost capacity across DLA’s production network. Also, DLA is continuously advancing its manufacturing technology to drive production efficiencies and in turn, enhance customers’ experience.
Image Source: Zacks Investment Research
Price Performance
This currently Zacks Rank #3 (Hold) player’s shares have increased 13.1%, outperforming the industry’s 10.1% rally in the past month.
Eye These Solid Picks
Some better-ranked stocks in the Consumer Discretionary space are Gildan Activewear (GIL - Free Report) , Oxford Industries (OXM - Free Report) and G-III Apparel (GIII - Free Report) .
The Zacks Consensus Estimate for Gildan Activewear’s 2022 sales and earnings per share (EPS) suggests growth of 8.9% and 3.3%, respectively, from the corresponding year-ago reported figures. GIL has a trailing four-quarter earnings surprise of 66.6%, on average.
Oxford Industries currently sports a Zacks Rank of 1. OXM has a trailing four-quarter earnings surprise of 112.8%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and EPS suggests growth of 10.2% and 13%, respectively, from the corresponding year-ago reported numbers.
G-III Apparel is currently Zacks #1 Ranked. GIII has a trailing four-quarter earnings surprise of 160.6%, on average.
The Zacks Consensus Estimate for G-III Apparel 's current financial-year sales suggests growth of 8.7% while the same for EPS indicates a rise of 5.2% from the respective year-ago reported figures.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Delta Apparel (DLA) Issues Upbeat Q2 Updates on Solid Demand
Delta Apparel, Inc. (DLA - Free Report) issued updates and preliminary net sales for second-quarter fiscal 2022. Management highlighted that sturdy consumer demand for its brands, including Salt Life, Delta and Soffe products was a positive. DLA witnessed an outstanding quarter in both its Activewear and DTG2Go businesses.
Strength in the Salt Life brand and go-to-market strategy also bodes well. The Salt Life brand performed impressively despite persistent capacity constraints, stemming from inventory shipping delays. Second-quarter fiscal 2022 ended Apr 2, 2022, is scheduled to be released on May 3, 2022, after the closing bell.
More Details
Delta Apparel projects net sales of around $130 million for the fiscal second quarter, with double-digit sales increases in the Delta Group and Salt Life Group divisions. Second-quarter sales projection suggests a 20% increase from $108.6 million recorded in the year-ago quarter. Management cited that this sets a new all-time record for the March quarter.
Management is on track with the expansion of the Salt Life brand’s presence. DLA introduced two new locations in Sarasota and Fort Lauderdale, FL, during the same quarter. This brings the number of retail locations to 17. DLA’s wholesale channel exhibited strength during the first half of fiscal 2022.
We note that gains from DLA’s digital first technology have been aiding DTG2Go digital print business for a while, which recorded higher units from the year-earlier quarter’s figure. Management is consistently investing in the digital print ecosystem with the latest state-of-the-art print equipment. The digital first technology is currently operating in three of the eight DTG2Go locations and is likely to expand to a fourth location in the near term. Increased unit sales and value-added services along with the ability to update pricing to offset elevated input cost drove Activewear growth.
Delta Apparel is constantly witnessing robust demand at all its serving channels on gains from its vertically integrated supply-chain model. Recently, management installed additional manufacturing equipment to boost capacity across DLA’s production network. Also, DLA is continuously advancing its manufacturing technology to drive production efficiencies and in turn, enhance customers’ experience.
Image Source: Zacks Investment Research
Price Performance
This currently Zacks Rank #3 (Hold) player’s shares have increased 13.1%, outperforming the industry’s 10.1% rally in the past month.
Eye These Solid Picks
Some better-ranked stocks in the Consumer Discretionary space are Gildan Activewear (GIL - Free Report) , Oxford Industries (OXM - Free Report) and G-III Apparel (GIII - Free Report) .
Gildan Activewear flaunts a Zacks Rank #1 (Strong Buy) at present. GIL has an expected long-term earnings growth rate of 8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gildan Activewear’s 2022 sales and earnings per share (EPS) suggests growth of 8.9% and 3.3%, respectively, from the corresponding year-ago reported figures. GIL has a trailing four-quarter earnings surprise of 66.6%, on average.
Oxford Industries currently sports a Zacks Rank of 1. OXM has a trailing four-quarter earnings surprise of 112.8%, on average.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and EPS suggests growth of 10.2% and 13%, respectively, from the corresponding year-ago reported numbers.
G-III Apparel is currently Zacks #1 Ranked. GIII has a trailing four-quarter earnings surprise of 160.6%, on average.
The Zacks Consensus Estimate for G-III Apparel 's current financial-year sales suggests growth of 8.7% while the same for EPS indicates a rise of 5.2% from the respective year-ago reported figures.