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Delta Apparel Reports 6% Quarterly Sales Increase

The Top 40 supplier said the results are preliminary, but early evidence indicates it was a strong quarter.

Hopefully it’s a bellwether.

Delta Apparel (asi/49172), a Top 40 promotional products supplier based in Duluth, GA, reported that net sales across all its business divisions for its recently ended quarter increased 6% year over year to $126 million, according to preliminary financial results.

Sales in the company’s Delta Group segment, which include but aren’t limited to business with the promo industry, continued to grow and were a factor in the company-wide revenue gain, said Delta Apparel CEO Robert W. Humphreys.

financials, charts, data on computer and smartphone

“Within our Delta Group, the activewear business has enjoyed continued success in what remains a fluid macro environment,” Humphreys said. “Within our DTG2Go business, we finished the June quarter strong and anticipate continued momentum in upcoming quarters as our ‘on-demand’ digital-first solution brings on additional production to meet demand and prepare for the upcoming holiday season.”

Word on profit, margins and earnings before interest, tax, depreciation and amortization will come when full financial results are released on Aug. 4, the company said.

Delta Apparel was reporting on its fiscal year third quarter. The three-month stretch essentially corresponds with the calendar year second quarter, which concluded at the end of June.

Promo products distributors increased sales 5.4% year over year in the first quarter of 2022. The industry is hoping to build on that momentum with a strong Q2.

Despite a host of economic headwinds, there’s anecdotal evidence from distributors that the second quarter was, on the whole, good for promo. A stout performance from a Top 40 supplier like Delta Apparel potentially adds more credence to the success narrative. The ASI Distributor Quarterly Sales Survey, which tracks industry-wide distributor sales, is due out for Q2 in a few weeks.

With estimated 2020 North American promo product revenue of $40.8 million, Delta Apparel ranked 35th on Counselor’s most recent list of the largest suppliers in the industry. The new rankings will be revealed the week of July 17.