Delta Apparel, Inc. (NYSE American: DLA), a leading provider of
core activewear and lifestyle apparel products, announces the
expansion of its digital print business, with the opening of a new
integrated digital print and distribution facility in Phoenix,
Arizona, combining DTG2Go’s digital print business with Delta
Apparel’s own supply of garments. This new facility, expected to
open in August, provides the expanded capacity needed for DTG2Go to
meet the rapidly growing demands for its digital print model.
The Phoenix facility will increase DTG2Go’s
footprint to eight digital printing locations across the U.S.,
further expanding its one-day shipping reach to multiple markets,
including Phoenix, Tucson, San Diego and greater Los
Angeles.
Deborah Merrill, Delta Group President,
commented, “We are thrilled to be in a position to continue to
invest in our strong growth business, DTG2Go. The Phoenix facility
expands our distribution footprint, now enabling us to serve nearly
60% of the U.S. population with one-day shipping. It also gives us
the ability to increase our overall capacity with additional
equipment to better serve our existing customers and bring on new
customers seeking the unique, on-demand model we offer.”
Following an April year-over-year sales increase
of over 25%, DTG2Go’s May sales accelerated to a 32% year-over-year
growth. Importantly, approximately 40% of the increase in orders
received in the quarter to date is attributable to onboarding new
customers to the DTG2Go platform. Continuing the trend from
April, over 30% of DTG2Go’s May production was printed on a
Delta-branded garment, which is more than twice that of a year
ago.
Merrill continued, “We continue to see
incredible demand for our unique DTG2Go model. We are the
only digital print supplier in the world that can offer a seamless,
vertically-integrated solution, utilizing our proprietary software
and internal supply chain to offer a fully-decorated, on-demand
product shipped directly to the consumer, eliminating non-value
added costs and reducing the risk of third-party supply
chains. We see this as a tremendous competitive
advantage. With the recent disruptions in supply chains and
the inability for consumers to shop in traditional retail stores
due to COVID-19, the benefits of our DTG2Go model have become
apparent in the marketplace. We were able to continue
operations, utilizing our network of facilities across the country,
giving our existing customers, and new customers, a source of
expanded revenue during times when needed most.”
As a part of the expansion, the Company plans to
increase its fleet of digital printers by 10%, including adding
eight new Kornit Atlas printers to Phoenix. Overall, the
Phoenix facility gives DTG2Go the space to ultimately operate
sixteen digital print machines, giving DTG2Go future expansion
opportunities.
“The additional equipment for the new Phoenix
location provides production capacity to meet the impressive demand
we are experiencing,” commented Merrill. “In a business that has
historically achieved double-digit operating profits and greater
than 20% EBITDA margins, this new investment was an easy decision
to make. We believe customer adoption rates to the
innovative, on-demand model will accelerate in the upcoming year,
and we expect the addition of our eighth facility, further
expanding our capacity and reach to consumers, will further
solidify our leadership position in the market.”
About DTG2GoDTG2Go is a market leader in the
direct-to-garment digital print and fulfillment industry, bringing
technology and innovation to the supply chain of its many
customers. DTG2Go uses highly-automated factory processes and its
proprietary software to deliver on-demand, digitally printed
apparel direct to consumers on behalf of its customers. Utilizing
its seven fulfillment facilities throughout the United States,
DTG2Go offers a robust digital supply chain, shipping custom
graphic products within 24 to 48 hours to consumers across the
United States and in over 100 countries worldwide. DTG2Go services
the fast-growing e-retailer channels, as well as the ad-specialty,
promotional products, screen print, traditional retail, social
media, and licensed apparel marketplaces, among others. DTG2Go’s
nationwide digital print and fulfillment network currently includes
facilities integrated within Delta Apparel’s Activewear
distribution centers in Miami, Florida; Dallas, Texas; and
Cranbury, New Jersey. Additional facilities are located in
Clearwater, Florida; Reno, Nevada; Storm Lake, Iowa; and
Fayetteville, North Carolina.
About Delta Apparel, Inc.Delta
Apparel, Inc., along with its operating subsidiaries, DTG2Go, LLC,
Salt Life, LLC, and M.J. Soffe, LLC, is a vertically-integrated,
international apparel company that designs, manufactures, sources,
and markets a diverse portfolio of core activewear and lifestyle
apparel products under the primary brands of Salt Life®, COAST®,
Soffe®, and Delta. The Company is a market leader in the
direct-to-garment digital print and fulfillment industry, bringing
DTG2Go technology and innovation to the supply chain of its
customers. The Company specializes in selling casual and athletic
products through a variety of distribution channels and tiers,
including outdoor and sporting goods retailers, independent and
specialty stores, better department stores and mid-tier retailers,
mass merchants and e-retailers, the U.S. military, and through its
business-to-business e-commerce sites. The Company’s products are
also made available direct-to-consumer on its websites at
www.saltlife.com, www.coastapparel.com, www.soffe.com and
www.deltaapparel.com as well as through its branded retail stores.
The Company’s operations are located throughout the United States,
Honduras, El Salvador, and Mexico, and it employs approximately
8,400 people worldwide. Additional information about the Company is
available at www.deltaapparelinc.com.
Company Contact:
Deborah Merrill, 864-232-5200 x6620
investor.relations@deltaapparel.com
Investor Relations and Media Contact: ICR, Inc.
Investors: Tom Filandro, 646-277-1235
Media: Jessica Liddell, 203-682-8208 DLAPR@icrinc.com
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