(Filed Under Financial and General Interest News). Delta Apparel, Inc. reported net sales for the three months ended September 27, 2008, were $91.4 million, an increase of $18.9 million, or 26.0 percent, from the prior year's first quarter.
Both the activewear and retail-ready segments had higher sales driven by the second consecutive quarter of sales growth in each of the company's four business units.
Gross margins increased 320 basis points to 21.1 percent compared to 17.9 percent in the prior year first quarter. The prior year first quarter included $2.0 million of restructuring related expenses, lowering the gross margin by approximately 270 basis points.
Net income for the first quarter was $0.7 million, compared to the prior year's first quarter net loss of $1.5 million.
"First quarter results exceeded our internal expectations and we are on track to achieve our fiscal year 2009 expectations," said Robert W. Humphreys, President and Chief Executive Officer.
"While we are not yet satisfied with our production costs, we are seeing improved productivity in our manufacturing facilities. We continued to expand output in our state-of-the-art textile plant, Ceiba Textiles during our first quarter, and are on pace to achieve our goal of 700,000 pounds of weekly fabric production by the end of our second quarter."
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