Quarterly report pursuant to Section 13 or 15(d)

Note J - Business Segments

Note J - Business Segments
3 Months Ended
Jan. 02, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]


Note J—Business Segments


Our operations are managed and reported in two segments, Delta Group and Salt Life Group, which reflect the manner in which the business is managed and results are reviewed by the Chief Executive Officer, who is our chief operating decision maker. 


The Delta Group is comprised of our business units primarily focused on core activewear styles, and includes our DTG2Go, Delta Activewear, and Soffe business units. We are a market leader in the on-demand, digital print and fulfillment industry, bringing DTG2Go's proprietary technology and innovation to the supply chain of our customers. Delta Activewear is a preferred supplier of activewear apparel to the wholesale and private label markets. We offer a broad range of apparel and accessories through our catalog business under the Delta and Soffe brands as well as other brands that we distribute utilizing our digital platform and network of fulfillment centers. In addition to our catalog business, we serve our customers as their supply chain partner, from product development to shipment of their branded products, with the majority of products being sold with value-added services including embellishment, hangtags, and ticketing, so that they are ready for retail sale to end consumers.


The Salt Life Group is comprised of our lifestyle brands focused on a broad range of apparel garments, headwear and related accessories to meet consumer preferences and fashion trends, and includes our Salt Life and Coast business units. These products are sold through specialty and boutique shops, outdoor retailers and traditional department stores, as well as direct-to-consumer through branded ecommerce sites and branded retail stores. Products in this segment are marketed under our lifestyle brands of Salt Life® and COAST®, as well as other labels.


Our Chief Operating Decision Maker and management evaluate performance and allocate resources based on profit or loss from operations before interest, income taxes and special charges ("segment operating earnings"). Our segment operating earnings  may not be comparable to similarly titled measures used by other companies. The accounting policies of our reportable segments are the same as those described in Note 2 in our Annual Report on Form 10-K for fiscal 2020, filed with the SEC. Intercompany transfers between operating segments are transacted at cost and have been eliminated within the segment amounts shown in the following table (in thousands).



Three Months Ended


December 2020


December 2019


Segment net sales:


Delta Group

  $ 87,624     $ 88,950  

Salt Life Group

    7,099       6,939  

Total net sales

  $ 94,723     $ 95,889  

Segment operating income (loss):


Delta Group (1)

  $ 6,276     $ 7,266  

Salt Life Group

    (136 )     (668 )

Total segment operating income

  $ 6,140     $ 6,598  


(1) In fiscal 2021, the Delta Group operating income included $1.3 million of expense, reported within "Other loss/(income), net", related to two hurricanes that disrupted operations during the December 2020 quarter.


The following table reconciles the segment operating income to the consolidated earnings before provision for income taxes (in thousands):



Three Months Ended


December 2020


December 2019


Segment operating income

  $ 6,140     $ 6,598  

Unallocated corporate expenses

    3,071       3,961  

Unallocated interest expense

    1,654       1,802  

Consolidated earnings before provision for income taxes

  $ 1,415     $ 835