International activewear and lifestyle apparel retailer Delta has reported a significant increase in its net loss for the first quarter (Q1) of the fiscal year 2024 (FY24). The FY24 net loss was $8.5m, while the net loss for the same period of FY23 was $3.6m.
The retailer’s net loss per share also saw a substantial increase, rising to $1.22 in Q1 FY24 from $0.51 in the corresponding period of FY23.
Net sales experienced a downturn, decreasing to $79.9m compared to $107.3m in the same period of the previous year.
Its Q1 earnings before interest, taxes, depreciation, and amortisation resulted in a loss of $1.3m.
The company’s gross margins also contracted to 10.9% from 12.7% in the same period of the previous year, primarily due to production curtailments.
Delta’s selling, general and administrative expenses fell from $18.9m in Q1 FY23 to $18.6m in Q1 FY24.
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The operating loss for Delta Apparel also worsened, increasing from $2.6m to an operating loss of $4.9m.
Delta chairman and chief executive officer Robert Humphreys said: “Many of the unfavourable market dynamics we saw across our business and the activewear industry last year persisted during our first quarter.
“We continued to take decisive action to improve our balance sheet and streamline our cost structure and operations.
“Our debt and inventory levels were down more than 20% year-on-year and we are very near completion of our plan to reduce our offshore manufacturing footprint down to two countries and consolidate production in our more efficient Central American platform.”