Delta Apparel Inc (DLA)DLA

Delta Apparel, Inc.: A Comprehensive Overview

Company Profile:

History and Background:

• Founded in 1877, starting as the Chadbourn Hosiery Mill in North Carolina.
• Faced difficult times in the 1990s due to increased competition from overseas manufacturers.
• Restructured and successfully emerged from bankruptcy in 1999.
• Acquired multiple brands like Salt Life, Soffe, and Junkfood Clothing, expanding its product portfolio.

Core Business Areas:

• Design, manufacture, and sourcing of private label apparel.
• Owning and operating several major brands in the activewear, athletic, and casual apparel markets.
• Offering both finished products and blank garments for decoration.

Leadership and Structure:

• CEO: Robert Humphreys
• CFO: Kenneth S. Hilliard
• 10 directors on the board with diversified experience
• Corporate structure emphasizes vertical integration and global manufacturing capabilities.

Top Products and Market Share:

Products:

• Activewear and fitness apparel
• Sportswear and team uniforms
• Casual wear and loungewear
• Underwear and socks
• Blank t-shirts and apparel for decoration

Market Share:

• Accurate market share data is not publicly available due to the diverse nature of Delta Apparel's product offerings.
• However, the company holds significant positions in various athletic and casual wear segments.
• Strong brand recognition and established partnerships contribute to its market presence.

Product Performance and Competition:

• Delta Apparel's products generally receive positive reviews for quality and value.
• The company faces intense competition from large athletic wear brands and overseas manufacturers.
• Differentiates itself through diverse product offerings, customization options, and strong brand portfolio.

Total Addressable Market:

• The global apparel market is estimated to reach $3.3 trillion by 2025.
• Delta Apparel operates within specific segments within this market, focusing on activewear, casual wear, and private label apparel.
• The company's addressable market is estimated to be around $500 billion to $750 billion.

Financial Performance:

Recent Financial Statements:

• Revenue for FY 2023: $ 810.6 million
• Net income for FY 2023: $37.7 million
• Profit margin for FY 2023: 4.7%
• EPS for FY 2023: $1.08

Year-over-Year Performance:

• Revenue and net income have seen fluctuations in recent years.
• Profit margins have remained relatively stable.
• EPS has shown moderate growth.

Cash Flow and Balance Sheet:

• The company has a healthy cash flow position with positive operating cash flow.
• The balance sheet shows moderate debt levels and sufficient liquidity.

Dividends and Shareholder Returns:

Dividend History:

• Delta Apparel has a history of paying dividends, although the payout ratio has fluctuated.
• Recent dividend yield: 0.9%

Shareholder Returns:

• Total shareholder return over the past 1 year: -7.5%
• Total shareholder return over the past 5 years: 27.5%
• Total shareholder return over the past 10 years: 115%

Growth Trajectory:

Historical Growth:

• The company has experienced moderate revenue growth over the past 5 to 10 years.
• Profitability has been impacted by competitive pressures and economic conditions.

Future Growth Projections:

• Delta Apparel aims to expand its e-commerce presence and grow its key brands.
• The company expects moderate revenue growth in the coming years.
• Future profitability hinges on successful execution of growth strategies.

Market Dynamics:

Industry Overview:

• The apparel industry is highly competitive and faces challenges like shifting consumer preferences and global competition.
• The rise of e-commerce and athleisure trends present both opportunities and challenges.

Delta Apparel's Positioning:

• The company is well-positioned in the activewear and casual wear segments.
• Strong brand portfolio, vertical integration, and focus on customization offer competitive advantages.
• Adapting to changing consumer trends and leveraging digital channels will be crucial for future success.