Quarterly report pursuant to Section 13 or 15(d)

Description of Business and Basis of Presentation (Policy)

v3.23.1
Description of Business and Basis of Presentation (Policy)
6 Months Ended
Apr. 01, 2023
Business Description and Basis of Presentation [Abstract]  
Fiscal Period
We operate on a
 
52-53 week
 
fiscal year
 
ending on
 
the Saturday
 
closest to
 
September 30.
 
Our 2023 fiscal
 
year is
 
a 52-week
 
year and
 
will end
 
on September
 
30, 2023 ("fiscal
2023"). Accordingly, this Quarterly Report on Form 10-Q presents our results for our second quarter of fiscal 2023. Our 2022 fiscal year was a 52-week year and ended
on October 1, 2022 ("fiscal 2022").
Basis of Accounting
We prepared the accompanying interim Condensed Consolidated
 
Financial Statements in accordance
 
with the instructions for Form
 
10-Q and Article 10 of Regulation S-
X. Accordingly, they do not include all of
 
the information and footnotes required
 
by U.S. generally accepted accounting
 
principles ("U.S. GAAP") for complete
 
financial
statements.
 
We
 
believe
 
these
 
Condensed
 
Consolidated
 
Financial
 
Statements include
 
all
 
normal
 
recurring
 
adjustments considered
 
necessary
 
for
 
a
 
fair
 
presentation.
Operating results
 
for the
 
three and six months ended March 2023 are
 
not necessarily
 
indicative of
 
the results
 
that may
 
be expected
 
for our
 
fiscal 2023.
 
Although our
various product lines are
 
sold on a year-round
 
basis, the demand for
 
specific products or styles
 
reflects some seasonality.
 
By diversifying our product
 
lines and go-to-
market strategies over the years, we have reduced the overall seasonality of our business. Consumer demand for apparel is cyclical and dependent upon the overall level
of demand for soft
 
goods, which may or
 
may not coincide with
 
the overall level of
 
discretionary consumer spending.
 
These levels of demand
 
change as regional,
 
domestic
and international economic conditions
 
change. Therefore, the distribution
 
of sales by quarter in fiscal
 
2023 may not be indicative
 
of the distribution in future
 
years. These
Condensed Consolidated Financial Statements should be
 
read in conjunction with the
 
audited Consolidated Financial Statements and
 
footnotes included in our Annual
Report on Form 10-K for our fiscal 2022, filed with the United
 
States Securities and Exchange Commission (“SEC”).
Consolidation
Our Condensed Consolidated Financial Statements include the accounts of Delta
 
Apparel and its wholly-owned and majority-owned domestic and foreign subsidiaries.
We
 
apply the
 
equity method of
 
accounting for
 
our investment in
31
% of
 
the outstanding
 
capital stock
 
of a
 
Honduran company.
 
During the
 
six months
 
ended March
2023 and March 2022,
 
we received dividends
 
from this investment
 
of $
1.2
 
million and $
1.1
 
million, respectively.
 
Our Ceiba Textiles
 
manufacturing facility is
 
leased
under an operating lease
 
arrangement with this Honduran
 
company. During the six months
 
ended March 2023
 
and March 2022, we
 
paid approximately $
0.9
 
million under
this arrangement.