US lifestyle and activewear company Delta Apparel has reported a 7 percent increase in sales in the third quarter of the year.
In the three months to July 2, net sales came in at 126.9 million dollars, up from 118.7 million dollars a year earlier.
Sales at the company’s Delta Group segment rose 3 percent to 106 million dollars, while sales in its Salt Life segment jumped 30 percent to 20.9 million dollars.
“We are pleased to achieve another quarter of revenue growth in what remains a dynamic operating environment,” Delta Apparel CEO and chair Robert W. Humphreys told investors.
But it wasn’t all good news. On a consolidated basis, gross margins fell 130 basis points to 24.2 percent, linked to higher cotton prices, energy, and freight costs.
Net income fell to 6.2 million dollars from 8.2 million dollars a year earlier.