Quarterly report pursuant to Section 13 or 15(d)

Business Segments

Business Segments
6 Months Ended
Apr. 01, 2023
Business Segments [Abstract]  
Business Segments
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 the following business
units, which are primarily focused on core activewear styles:
DTG2Go and Delta Activewear.
DTG2Go is a
market leader in the
on-demand, direct-to-garment digital print
and fulfillment industry,
bringing technology and innovation
to the supply
chains of our
many customers. Our ‘On-Demand DC’ digital solution provides retailers
and brands with immediate access to utilize DTG2Go’s broad network of print and fulfillment
facilities, while offering
the scalability to integrate
digital fulfillment within the
customer's own distribution facilities.
We use
highly-automated factory processes and
our proprietary
software to
deliver on-demand,
digitally printed
apparel direct
to consumers
on behalf
our customers.
seven digital
fulfillment facilities
throughout the United States,
DTG2Go offers a robust
digital supply chain, shipping custom
graphic products within 24
to 48 hours to
consumers in the United States
and to
over 100
countries worldwide. DTG2Go
has made
significant investments in
its “digital-first” retail
model providing digital
graphic prints that
meet the high-
quality standards required
for brands, retailers
and intellectual property
holders. Through integration
with Delta Activewear,
DTG2Go also services
the eRetailer,
specialty, promotional and screen print marketplaces, among others.
Delta Activewear is a preferred supplier of activewear
apparel to regional and global brands as
well as direct to retail and wholesale
markets. The Activewear business is
organized around three key customer
channels – Delta Direct, Global
Brands, and Retail Direct –
that are distinct in their
go-to-market strategies and how
their respective
customer bases
source their
various apparel
needs. Our
Delta Direct
channel services
the screen
print, promotional,
and eRetailer
markets as
well as
retail licensing
customers that sell through to many mid-tier and mass market retailers. Delta Direct products include a broad portfolio of apparel and accessories under the Delta, Delta
Platinum, and Soffe
brands as well
as sourced
items from
select third
party brands.
Our fashion
basics line
includes our Platinum
Collection, which
offers fresh, fashionable
silhouettes with a luxurious look and feel,
as well as versatile fleece offerings.
We offer innovative
apparel products, including the Delta Dri line of
performance shirts
built with moisture-wicking material
to keep athletes dry
and comfortable; ringspun
garments with superior
comfort, style and durability;
and Delta Soft, a
collection with
an incredible feel and price. We also offer our heritage, mid-
and heavier-weight Delta Pro Weight® and Magnum Weight® tee shirts.
The iconic Soffe brand offers activewear for spirit
makers and record breakers and
is widely known for the original "cheer
short" with the signature roll-down waistband.
Soffe carries a wide range of activewear for the entire family. Soffe's heritage is anchored in the military, and we continue to be a proud supplier to both active duty and
veteran United States
military personnel worldwide.
The Soffe men's assortment
features the tagline
"anchored in the military,
grounded in training"
and offers everything
from physical training
gear certified by
the respective branches of
the military,
classic base layers
that include the
3-pack tees, and
the iconic "ranger
Complementing the
Delta and
Soffe brand
apparel, we
our customers
broad range
product categories
with nationally
recognized brands
including polos,
outerwear, headwear, bags and other accessories. Our Soffe products are also available direct to consumers
at www.soffe.com.
Our Global
Brands channel
serves as a
key supply chain
partner to
large multi-national
brands, major branded
sportswear companies, trendy
regional brands, and
branches of the
United States armed
forces, providing services
ranging from custom
product development to
shipment of branded
products with “retail-ready”
added services including embellishment, hangtags, and ticketing.
Our Retail Direct
channel serves brick
and mortar and
online retailers by
providing our portfolio
of Delta, Delta
Platinum, and
Soffe products directly
to the retail
ecommerce fulfillment
centers of
diversified customer
base including
sporting goods
outdoor retailers,
specialty and
resort shops,
farm and
fleet stores,
department stores, and mid-tier retailers. As a
key element of the integrated Delta Group
segment, each of Activewear’s primary channels offer
a seamless solution for
small-run decoration needs with on-demand digital print services,
powered by DTG2Go.
The Salt Life Group is
comprised of our Salt Life business, which
is built on the authentic, aspirational Salt
Life lifestyle brand that represents a passion
for the ocean,
the salt air, and, more importantly, a way of life and all it offers, from surfing, fishing, and diving to beach fun and sun-soaked relaxation. The Salt Life brand combines
function and fashion with a tailored fit for the active lifestyles of those that “live the Salt Life.” With increased worldwide appeal, Salt Life has continued to provide the
cotton graphic tees and logo decals that originally
drove awareness for the brand, and expanded into
performance apparel, swimwear, board shorts, sunglasses, bags, and
accessories. Consumers can also seamlessly experience the Salt Life
brand through retail partners including surf shops, specialty stores,
department stores, and outdoor
merchants or by accessing our Salt Life ecommerce site
at www.saltlife.com.
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 (loss)
earnings"). Our
segment operating
(loss) earnings
may not
be comparable
to similarly
titled measures
used by
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 2022, 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).
The following table reconciles the segment operating (loss)
earnings to the consolidated (loss) earnings before (benefit
from) provision for income taxes (in thousands):
Three Months Ended
Six Months Ended
March 2023
March 2022
March 2023
March 2022
Segment net sales:
Delta Group
Salt Life Group
Total net sales
Segment operating (loss) earnings:
Delta Group
Salt Life Group
Total segment operating (loss) earnings
Three Months Ended
Six Months Ended
March 2023
March 2022
March 2023
March 2022
Segment operating (loss) earnings
Unallocated corporate expenses
Unallocated interest expense
Consolidated (loss) earnings before (benefit from) provision
for income