Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Apr. 01, 2023 | Apr. 28, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Year Focus | 2023 | |
Document Period End Date | Apr. 01, 2023 | |
Document Transition Report | false | |
Entity Registrant Name | DELTA APPAREL, INC. | |
Entity File Number | 1-15583 | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 58-2508794 | |
Entity Address, Address Line One | 2750 Premier Parkway | |
Entity Address Address Line 2 | Suite 100 | |
Entity Address, City or Town | Duluth | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30097 | |
City Area Code | 678 | |
Local Phone Number | 775-6900 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | DLA | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,001,020 | |
Entity Central Index Key | 0001101396 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --09-30 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Apr. 01, 2023 | Oct. 01, 2022 |
Assets | ||
Cash and cash equivalents | $ 625,000 | $ 300,000 |
Accounts receivable, less allowances of $124 and $109, respectively | 62,020,000 | 68,215,000 |
Other receivables | 1,125,000 | 1,402,000 |
Income tax receivable | 1,680,000 | 1,969,000 |
Inventories, net | 243,167,000 | 248,538,000 |
Prepaid expenses and other current assets | 4,096,000 | 2,755,000 |
Total current assets | 312,713,000 | 323,179,000 |
Property, plant and equipment, net of accumulated depreciation of $114,569 and $108,565, respectively | 70,739,000 | 74,109,000 |
Goodwill | 37,897,000 | 37,897,000 |
Intangibles, net | 22,834,000 | 24,026,000 |
Deferred income taxes | 1,342,000 | 1,342,000 |
Operating lease assets | 56,174,000 | 50,275,000 |
Equity method investment | 9,036,000 | 9,886,000 |
Other assets | 2,239,000 | 2,967,000 |
Total assets | 512,974,000 | 523,681,000 |
Liabilities: | ||
Accounts payable | 66,071,000 | 83,553,000 |
Accrued expenses | 18,581,000 | 27,414,000 |
Income taxes payable | 671,000 | 379,000 |
Current portion of finance leases | 8,843,000 | 8,163,000 |
Current portion of operating leases | 8,861,000 | 8,876,000 |
Current portion of long-term debt | 8,962,000 | 9,176,000 |
Total current liabilities | 111,989,000 | 137,561,000 |
Long-term income taxes payable | 2,131,000 | 2,841,000 |
Long-term finance leases | 17,483,000 | 16,776,000 |
Long-term operating leases | 48,804,000 | 42,721,000 |
Long-term debt | 159,591,000 | 136,750,000 |
Deferred income taxes | 337,000 | 4,310,000 |
Total liabilities | 340,335,000 | 340,959,000 |
Shareholder's equity: | ||
Preferred stock - $0.01 par value, 2,000,000 shares authorized, none issued and outstanding | ||
Common stock $0.01 par value, 15,000,000 authorized, 9,646,972 shares issued, and 7,001,020 and 6,915,663 shares outstanding as of March 2023 and September 2022, respectively | 96,000 | 96,000 |
Additional paid-in capital | 60,912,000 | 61,961,000 |
Retained earnings | 156,043,000 | 166,600,000 |
Accumulated other comprehensive income | 180,000 | 141,000 |
Treasury stock - 2,645,952 and 2,731,309 shares as of March 2023 and September 2022, respectively | (43,896,000) | (45,420,000) |
Equity attributable to Delta Apparel, Inc. | 173,335,000 | 183,378,000 |
Equity attributable to non-controlling interest | (696,000) | (656,000) |
Total equity | 172,639,000 | 182,722,000 |
Total liabilities and equity | $ 512,974,000 | $ 523,681,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Allowances for accounts receivable | $ 124 | $ 109 |
Property, plant and equipment, accumulated deprecation | $ 114,569 | $ 108,565 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 9,646,972 | 9,646,972 |
Common stock, shares outstanding (in shares) | 7,001,020 | 6,915,663 |
Treasury stock (in shares) | 2,645,952 | 2,731,309 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Net sales | $ 110,335,000 | $ 131,698,000 | $ 217,630,000 | $ 242,444,000 |
Cost of goods sold | 94,126,000 | 98,176,000 | 187,798,000 | 185,919,000 |
Gross profit | 16,209,000 | 33,522,000 | 29,832,000 | 56,525,000 |
Selling, general and administrative expenses | 19,298,000 | 19,714,000 | 38,168,000 | 37,197,000 |
Other expense (income), net | 2,265,000 | (533,000) | (356,000) | (929,000) |
Operating (loss) income | (5,354,000) | 14,341,000 | (7,980,000) | 20,257,000 |
Interest expense, net | 3,723,000 | 1,801,000 | 6,613,000 | 3,399,000 |
(Loss) income before (benefit from) provision for income taxes | (9,077,000) | 12,540,000 | (14,593,000) | 16,858,000 |
(Benefit from) provision for income taxes | (2,079,000) | 2,414,000 | (3,996,000) | 3,062,000 |
Consolidated net (loss) income | (6,998,000) | 10,126,000 | (10,597,000) | 13,796,000 |
Net (loss) income attributable to non-controlling interest | (6,000) | (11,000) | (40,000) | 14,000 |
Net (loss) income attributable to shareholders | $ (6,992,000) | $ 10,137,000 | $ (10,557,000) | $ 13,782,000 |
Basic (loss) income per share (in dollars per share) | $ (1) | $ 1.46 | $ (1.51) | $ 1.98 |
Diluted (loss) income per share (in dollars per share) | $ (1) | $ 1.44 | $ (1.51) | $ 1.95 |
Weighted average number of shares outstanding (in shares) | 7,001 | 6,953 | 6,978 | 6,976 |
Dilutive effect of stock awards (in shares) | 87 | 87 | ||
Weighted average number of shares assuming dilution (in shares) | 7,001 | 7,040 | 6,978 | 7,063 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Net (loss) income attributable to shareholders | $ (6,992) | $ 10,137 | $ (10,557) | $ 13,782 |
Other comprehensive (loss) gain related to unrealized (loss) gain on derivatives, net of income tax | (30) | 381 | 39 | 593 |
Consolidated comprehensive (loss) income | $ (7,022) | $ 10,518 | $ (10,518) | $ 14,375 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-controlling Interest [Member] |
Balance (in shares) at Oct. 02, 2021 | 9,646,972 | 2,672,312 | |||||
Balance at Oct. 02, 2021 | $ 164,194,000 | $ 96,000 | $ 60,831,000 | $ 146,860,000 | $ (786,000) | $ (42,149,000) | $ (658,000) |
Net income | 3,645,000 | 3,645,000 | |||||
Other comprehensive income (loss) | 212,000 | 212,000 | |||||
Net (loss) income attributable to non-controlling interest | 25,000 | 25,000 | |||||
Purchase of common stock | (2,143,000) | $ (2,143,000) | |||||
Purchase of common stock (in shares) | 74,232 | ||||||
Vested stock awards | (1,092,000) | (1,766,000) | $ 674,000 | ||||
Vested stock awards (in shares) | (76,460) | ||||||
Stock based compensation | 140,000 | 140,000 | |||||
Balance (in shares) at Jan. 01, 2022 | 9,646,972 | 2,670,084 | |||||
Balance at Jan. 01, 2022 | 164,981,000 | $ 96,000 | 59,205,000 | 150,505,000 | (574,000) | $ (43,618,000) | (633,000) |
Balance (in shares) at Oct. 02, 2021 | 9,646,972 | 2,672,312 | |||||
Balance at Oct. 02, 2021 | 164,194,000 | $ 96,000 | 60,831,000 | 146,860,000 | (786,000) | $ (42,149,000) | (658,000) |
Net income | 13,782,000 | ||||||
Net (loss) income attributable to non-controlling interest | 14,000 | ||||||
Balance (in shares) at Apr. 02, 2022 | 9,646,972 | 2,698,099 | |||||
Balance at Apr. 02, 2022 | 175,356,000 | $ 96,000 | 59,919,000 | 160,642,000 | (193,000) | $ (44,464,000) | (644,000) |
Balance (in shares) at Jan. 01, 2022 | 9,646,972 | 2,670,084 | |||||
Balance at Jan. 01, 2022 | 164,981,000 | $ 96,000 | 59,205,000 | 150,505,000 | (574,000) | $ (43,618,000) | (633,000) |
Net income | 10,137,000 | 10,137,000 | |||||
Other comprehensive income (loss) | 381,000 | 381,000 | |||||
Net (loss) income attributable to non-controlling interest | (11,000) | (11,000) | |||||
Purchase of common stock | (846,000) | $ (846,000) | |||||
Purchase of common stock (in shares) | 28,015 | ||||||
Stock based compensation | 714,000 | 714,000 | |||||
Balance (in shares) at Apr. 02, 2022 | 9,646,972 | 2,698,099 | |||||
Balance at Apr. 02, 2022 | $ 175,356,000 | $ 96,000 | 59,919,000 | 160,642,000 | (193,000) | $ (44,464,000) | (644,000) |
Balance (in shares) at Oct. 01, 2022 | 6,915,663 | 9,646,972 | 2,731,309 | ||||
Balance at Oct. 01, 2022 | $ 182,722,000 | $ 96,000 | 61,961,000 | 166,600,000 | 141,000 | $ (45,420,000) | (656,000) |
Net income | (3,565,000) | (3,565,000) | |||||
Other comprehensive income (loss) | 69,000 | 69,000 | |||||
Net (loss) income attributable to non-controlling interest | (34,000) | (34,000) | |||||
Vested stock awards | (543,000) | (2,067,000) | $ 1,524,000 | ||||
Vested stock awards (in shares) | (85,357) | ||||||
Stock based compensation | 665,000 | 665,000 | |||||
Balance (in shares) at Dec. 31, 2022 | 9,646,972 | 2,645,952 | |||||
Balance at Dec. 31, 2022 | $ 179,314,000 | $ 96,000 | 60,559,000 | 163,035,000 | 210,000 | $ (43,896,000) | (690,000) |
Balance (in shares) at Oct. 01, 2022 | 6,915,663 | 9,646,972 | 2,731,309 | ||||
Balance at Oct. 01, 2022 | $ 182,722,000 | $ 96,000 | 61,961,000 | 166,600,000 | 141,000 | $ (45,420,000) | (656,000) |
Net income | (10,557,000) | ||||||
Net (loss) income attributable to non-controlling interest | $ (40,000) | ||||||
Balance (in shares) at Apr. 01, 2023 | 7,001,020 | 9,646,972 | 2,645,952 | ||||
Balance at Apr. 01, 2023 | $ 172,639,000 | $ 96,000 | 60,912,000 | 156,043,000 | 180,000 | $ (43,896,000) | (696,000) |
Balance (in shares) at Dec. 31, 2022 | 9,646,972 | 2,645,952 | |||||
Balance at Dec. 31, 2022 | 179,314,000 | $ 96,000 | 60,559,000 | 163,035,000 | 210,000 | $ (43,896,000) | (690,000) |
Net income | (6,992,000) | (6,992,000) | |||||
Other comprehensive income (loss) | (30,000) | (30,000) | |||||
Net (loss) income attributable to non-controlling interest | $ (6,000) | (6,000) | |||||
Purchase of common stock (in shares) | 0 | ||||||
Stock based compensation | $ 353,000 | 353,000 | |||||
Balance (in shares) at Apr. 01, 2023 | 7,001,020 | 9,646,972 | 2,645,952 | ||||
Balance at Apr. 01, 2023 | $ 172,639,000 | $ 96,000 | $ 60,912,000 | $ 156,043,000 | $ 180,000 | $ (43,896,000) | $ (696,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Operating activities: | ||
Consolidated net (loss) income | $ (10,597) | $ 13,796 |
Adjustments to reconcile net (loss) earnings to net cash used in operating activities: | ||
Depreciation and amortization | 7,642 | 7,434 |
Amortization of deferred financing fees | 268 | 162 |
Change in inventory market reserves | (3,540) | 1,290 |
(Benefit from) provision for deferred income taxes | (3,986) | 583 |
Non-cash stock compensation | 1,018 | 854 |
Loss on disposal of equipment | 69 | 383 |
Loss on impairment of equipment | 860 | |
Other, net | (390) | (1,180) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,472 | (10,524) |
Inventories | 8,911 | (37,278) |
Prepaid expenses and other current assets | (1,609) | (66) |
Other non-current assets | 2,019 | 1,014 |
Accounts payable | (17,657) | 11,742 |
Accrued expenses | (8,659) | (3,215) |
Change in net operating lease liabilities | 169 | 243 |
Income taxes | (129) | 1,352 |
Other liabilities | (1,049) | |
Net cash used in operating activities | (19,139) | (14,459) |
Investing activities: | ||
Purchases of property and equipment | (2,495) | (7,670) |
Proceeds from sale of property and equipment | 33 | |
Proceeds from equipment under financed leases | 4,417 | |
Cash paid for intangible asset | (109) | |
Cash paid for business | (583) | |
Net cash provided by (used in) investing activities | 1,922 | (8,329) |
Financing activities: | ||
Proceeds from long-term debt | 254,103 | 265,034 |
Repayment of long-term debt | (231,476) | (243,483) |
Repayment of capital financing | (4,543) | (3,630) |
Repurchase of common stock | (2,989) | |
Payment of withholding taxes on stock awards | (542) | (1,092) |
Net cash provided by financing activities | 17,542 | 13,840 |
Net increase (decrease) in cash and cash equivalents | 325 | (8,948) |
Cash and cash equivalents at beginning of period | 300 | 9,376 |
Cash and cash equivalents at end of period | 625 | 428 |
Supplemental cash flow information | ||
Finance lease assets exchanged for finance lease liabilities | 5,930 | 5,379 |
Operating lease assets exchanged for operating lease liabilities | $ 10,991 | $ 4,397 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Apr. 01, 2023 | |
Business Description and Basis of Presentation [Abstract] | |
Description of Business and Basis of Presentation | Note A— Description of Business and Basis of Presentation Delta Apparel, Inc. (collectively with DTG2Go, LLC, Salt Life, LLC, M.J. Soffe, LLC, and other subsidiaries, "Delta Apparel," "we," "us," "our," or the "Company") is a vertically-integrated, international apparel company with approximately 7,000 of core activewear and lifestyle apparel products under our primary brands of Salt Life®, Soffe®, and Delta. We are a fulfillment industry, through a variety of distribution retailers, mass merchants, eRetailers, the U.S. on our ecommerce sites apparel products to a broad and evolving customer base whose We design and internally manufacture the majority 90 % of the apparel a high degree of located in facilities are strategically located throughout the United States to better serve our customers with same-day shipping on our catalog products and weekly to retailers. We symbol “DLA." We operate on a 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"). For presentation purposes herein, all references to period We prepared the accompanying interim Condensed Consolidated X. Accordingly, they do not include all of statements. Operating results various product lines are 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 and international economic conditions Condensed Consolidated Financial Statements should be Report on Form 10-K for our fiscal 2022, filed with the United Our Condensed Consolidated Financial Statements include the accounts of Delta We 31 % of 2023 and March 2022, 1.2 1.1 under an operating lease 0.9 this arrangement. We make part of this, or any and other filings Georgia 30097. Requests can also be made by telephone to 864-232-5200, Period Ended Fiscal Year Date Ended March 2022 Fiscal 2022 April 2, 2022 June 2022 Fiscal 2022 July 2, 2022 September 2022 Fiscal 2022 October 1, 2022 December 2022 Fiscal 2023 December 31, 2022 March 2023 Fiscal 2023 April 1, 2023 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note B—Accounting Policies Our accounting policies are consistent with those described SEC. See Note C for consideration of recently issued |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Apr. 01, 2023 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | Note C—New Accounting Standards Standards Not Yet Adopted In June 2016, the FASB Financial Instruments - Credit Losses (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments 2016-13, the FASB released several amendments 326, Credit Losses (“ASC 326”). As a smaller reporting company as defined by 2024. We are currently evaluating the impacts of the provisions of ASC 326 on our financial condition, |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Apr. 01, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note D—Revenue Recognition Our Condensed Consolidated Statements of Operations consumer-facing websites; and sales from wholesale channels, below identifies the amount and percentage of net sales The table below provides net sales by reportable segment and Three Months Ended March 2023 March 2022 Retail $ 3,157 3 % $ 2,370 1 % Direct-to-consumer ecommerce 1,509 1 % 710 1 % Wholesale 105,669 96 % 128,618 98 % Net sales $ 110,335 100 % $ 131,698 100 % Six Months Ended March 2023 March 2022 Retail $ 6,611 3 % $ 5,273 2 % Direct-to-consumer ecommerce 2,672 1 % 2,054 1 % Wholesale 208,347 96 % 235,117 97 % Net sales $ 217,630 100 % $ 242,444 100 % Three Months Ended March 2023 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 91,344 0.0 % 0.3 % 99.7 % Salt Life Group 18,991 16.5 % 6.9 % 76.6 % Total $ 110,335 Three Months Ended March 2022 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 115,335 0.1 % 0.1 % 99.8 % Salt Life Group 16,363 14.1 % 3.3 % 82.6 % Total $ 131,698 Six Months Ended March 2023 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 188,354 0.1 % 0.2 % 99.7 % Salt Life Group 29,276 22.3 % 7.8 % 69.9 % Total $ 217,630 Six Months Ended March 2022 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 217,256 0.1 % 0.2 % 99.7 % Salt Life Group 25,188 19.8 % 6.3 % 73.9 % Total $ 242,444 |
Inventories
Inventories | 6 Months Ended |
Apr. 01, 2023 | |
Inventories [Abstract] | |
Inventories | Note E—Inventories Inventories, net of reserves of $ 14.1 17.7 Raw materials include finished Salt Life Group. March 2023 September 2022 Raw materials $ 18,796 $ 22,603 Work in process 18,574 23,501 Finished goods 205,797 202,434 $ 243,167 $ 248,538 |
Debt
Debt | 6 Months Ended |
Apr. 01, 2023 | |
Debt [Abstract] | |
Debt | Note F—Debt Credit Facility On May 10, 2016, National Association which are Wells Fargo, the "Borrowers"), are co-borrowers under and the February 3, 2023, and March 23, 2023. On June 2, 2022, the Borrowers entered into the forth therein (the “Seventh Amendment”). The Seventh primary pricing structure, (ii) amends 10 15 tenors, (iii) sets the SOFR floor to 0 respective amortization 5 (“FCCR”) for the preceding 12-month period to not be less than 1.0 1.1 ). On January 3, 2023, the Borrowers entered into the Eighth Amendment to forth therein (the “Eighth Amendment”). The Eighth transit inventory in the borrowing base and 12.5 % of the lesser of revolver amount as opposed to 12.5 % of the line cap. On February 3, 2023, the Borrowers entered into forth therein (“Ninth Amendment”). September 30, 2023, upon which Borrowers satisfy minimum availability thresholds and during which: (i) the Amended Credit 7,500,000 , (b) on 9,000,000 , (c) on and after June 5, 2023, through 10,000,000 ; and (d) at all times thereafter, 0 ; (ii) March 4, 2023; (iv) the Applicable Margin with respect to loans under 50 Event occurs if availability is less than $ 2,000,000 . On March 23, 2023, the Borrowers entered into the Tenth Amendment to the Fifth Amended and Restated Credit Agreement with Wells forth therein to account for specified costs and expenses The Amended Credit Agreement allows us to borrow 170 25 Provided that no event of default exists, 200 Administrative Agent's ability to secure clause and a “springing” will not reduce long-term debt with consideration of current maturities. As of March 2023, we had 153.1 7.6 %. Our cash on hand combined availability under the U.S. revolving 12.8 19.6 24.9 retained earnings free of restrictions to make cash dividend Honduran Debt Since March 2011, we have and capital expansion of our five - year terms, and 1.1 9.5 respectively. Additionally, in May 2022, we entered five -year term with a 3.7 priority lien on the assets of our Honduran operations and are not guaranteed by our U.S. entities. the debt approximates its fair value. As the revolving intend to re-borrow funds, subject to those covenants, the amounts El Salvador Debt In September 2022, we entered into five -year term with a principal amount of 3.0 investments in our The loan is March 2023 is listed as part of the long-term debt schedule below. Additional information about these loans and the outstanding balances March 2023 Revolving credit facility with Banco Ficohsa, a Honduran bank, 7.9 %, due August 2025 $ 3,300 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.75 %, quarterly installments which began September 2021 December 2025 5,579 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.75 %, quarterly installments which began March 2023 and are 2027 3,483 Term loan with Banco Ficohsa, a Panamanian bank, interest at the prevailing market rate installments which began October 2022 and are due through 2,754 |
Selling, General and Administra
Selling, General and Administrative Expense | 6 Months Ended |
Apr. 01, 2023 | |
Selling, General and Administrative Expense [Abstract] | |
Selling, General and Administrative Expense | Note G—Selling, General and Administrative Expense We include in selling, general and administrative ("SG&A") expenses the costs incurred subsequent to the receipt of finished goods at our distribution facilities, such as the cost of stocking, 5.7 and $ 5.6 11.2 ended March 2023 and 2022. In addition, SG&A expenses include costs related to store build-outs, and other general and administrative expenses. |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Apr. 01, 2023 | |
Stock-based Compensation [Abstract] | |
Stock-based Compensation | Note H—Stock-Based Compensation On February 6, 2020, our shareholders approved the Delta Apparel, Inc. 2020 Stock Plan ("2020 approved by our shareholders on February 4, 2015, form and substance to the 2010 Stock to offer a variety of compensatory awards designed to enhance the Company’s long-term success by encouraging stock ownership among its executives, key employees and directors. Under the 2020 Stock Plan, awards may be granted, and stock appreciation rights, restricted Company or serving as a director, unvested awards become fully vested under certain circumstances as defined in the 2020 Stock Plan. Such circumstances include, but are not limited to, the Stock Plan, to to the 2010 aggregate awards of restricted stock, restricted stock units and performance stock granted in a given calendar year. Shares are generally issued from treasury stock upon the vesting of the restricted stock units, performance units or other Compensation expense is recorded within SG&A in our Condensed Consolidated Statements of Operations over the vesting periods. During the March 2023 and March 2022 quarters, we recognized $ 0.4 0.9 benefits recognized of $ 0.2 0.2 March 2023 and March 1.0 1.3 tax benefits recognized of $ 0.3 0.2 During the December 2022 quarter, restricted 105,000 fiscal 2022 and were issued in accordance with their respective During the 5,000 18,000 forfeited. As of March 2023, there was $ 2.7 to be recognized over a period of 2.7 |
Purchase Contracts
Purchase Contracts | 6 Months Ended |
Apr. 01, 2023 | |
Purchase Contracts [Abstract] | |
Purchase Contracts | Note I—Purchase Contracts We payments under these contracts were as follows (in thousands): Yarn $ 14,985 Finished fabric 4,102 Finished products 4,797 $ 23,884 |
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 reviewed by the Chief Executive Officer, who is our chief operating decision maker. The Delta Group is comprised of the following business DTG2Go is a many customers. Our ‘On-Demand DC’ digital solution provides retailers facilities, while offering our proprietary throughout the United States, and to quality standards required specialty, promotional and screen print marketplaces, among others. Delta Activewear is a preferred supplier of activewear organized around three key customer customer bases 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 silhouettes with a luxurious look and feel, built with moisture-wicking material an incredible feel and price. We also offer our heritage, mid- The iconic Soffe brand offers activewear for spirit 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 from physical training Complementing the outerwear, headwear, bags and other accessories. Our Soffe products are also available direct to consumers Our Global branches of the added services including embellishment, hangtags, and ticketing. Our Retail Direct and department stores, and mid-tier retailers. As a small-run decoration needs with on-demand digital print services, The Salt Life Group is 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 accessories. Consumers can also seamlessly experience the Salt Life merchants or by accessing our Salt Life ecommerce site Our Chief Operating Decision Maker and management evaluate performance and special 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 (in thousands). The following table reconciles the segment operating (loss) Three Months Ended Six Months Ended March 2023 March 2022 March 2023 March 2022 Segment net sales: Delta Group $ 91,344 $ 115,335 $ 188,354 $ 217,256 Salt Life Group 18,991 16,363 29,276 25,188 Total net sales $ 110,335 $ 131,698 $ 217,630 $ 242,444 Segment operating (loss) earnings: Delta Group $ (7,487) $ 14,417 $ (7,363) $ 22,854 Salt Life Group 4,649 3,306 4,866 3,463 Total segment operating (loss) earnings $ (2,838) $ 17,723 $ (2,497) $ 26,317 Three Months Ended Six Months Ended March 2023 March 2022 March 2023 March 2022 Segment operating (loss) earnings $ (2,838) $ 17,723 $ (2,497) $ 26,317 Unallocated corporate expenses 2,516 3,382 5,483 6,060 Unallocated interest expense 3,723 1,801 6,613 3,399 Consolidated (loss) earnings before (benefit from) provision taxes $ (9,077) $ 12,540 $ (14,593) $ 16,858 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 01, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note K—Income Taxes The Tax corporate income tax rates, implementing a of foreign subsidiaries which will be paid income (“GILTI”) as well as a limitation on the corporations net tested income over the limited to the amount of U.S. adjusted business interest income and 30% of the taxpayer’s adjusted taxable and Section 163(j). foreign subsidiaries. Our effective income tax 27.5 % compared to a rate 18.2 % in the same effective rate of 17.9 % for fiscal 2022. We generally benefit from having income in are lower significant impact on our overall effective tax rate. The current year tax |
Derivatives and Fair Value Meas
Derivatives and Fair Value Measurements | 6 Months Ended |
Apr. 01, 2023 | |
Derivatives and Fair Value Measurements [Abstract] | |
Derivatives and Fair Value Measurements | Note L—Derivatives and Fair Value Measurements From time to time, we may use interest rate swaps or other instruments to manage our interest rate exposure and reduce the impact of future interest rate changes. These financial instruments are payments. As a result, the gains the related interest payments interest. The following table summarizes the fair value and presentation in the Condensed Consolidated of March 2023 and September 2022 (in thousands): From time to time, we may purchase do not receive hedge accounting goods sold on the Condensed Consolidated Statement of Operations. ASC 820, Fair measurements. Assets and liabilities. These levels are: Level 1 – Quoted prices (unadjusted) in active markets for Level 2 – Inputs other assets or liabilities in active markets and quoted prices for Level 3 – Unobservable methodologies and similar techniques. The following financial liabilities are measured at fair The fair value adjusted for our credit risk, which fall in Level 2 of the fair value hierarchy. At March 2023 and September 2022, book value for fixed rate debt approximated based on measurement). March 2023 September 2022 Deferred tax assets $ (60) $ (48) Other non-current liabilities 240 189 Accumulated other comprehensive income $ 180 $ 141 Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs Period Ended Total (Level 1) (Level 2) (Level 3) Interest Rate Swaps March 2023 $ 240 - $ 240 - September 2022 $ 189 - $ 189 - Effective Date Notional Amount Fixed LIBOR Rate Maturity Date Interest Rate Swap July 25, 2018 $ 20.0 3.18% July 25, 2023 |
Legal Proceedings
Legal Proceedings | 6 Months Ended |
Apr. 01, 2023 | |
Legal Proceedings [Abstract] | |
Legal Proceedings | Note M—Legal Proceedings At times, with parties believed to be financially capable, such actions |
Repurchase of Common Stock
Repurchase of Common Stock | 6 Months Ended |
Apr. 01, 2023 | |
Repurchase of Common Stock [Abstract] | |
Repurchase of Common Stock | Note N—Repurchase of Common Stock As of September 28, 2019, 60.0 Repurchase Program. We did no t purchase any shares of our common stock during the March 2023 3,735,114 of our common stock 56.4 and pursuant to 3.6 Program, which does not have an expiration date. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note O—Goodwill and Intangible Assets Components of intangible assets consist of the following Goodwill represents the 0.6 include $ 18.0 19.9 Depending on the type intangible assets for 0.6 0.6 2023 and March 2022 was $ 1.2 1.2 1.4 2023, approximately $ 1.4 1.4 March 2023 September 2022 Accumulated Net Accumulated Net Economic Cost Amortization Value Cost Amortization Life Goodwill $ 37,897 $ - $ 37,897 $ 37,897 $ - $ 37,897 N/A Intangibles: Tradename/trademarks $ 16,000 $ (5,117) $ 10,883 $ 16,000 $ (4,851) $ 11,149 20 30 Customer relationships 7,400 (3,583) 3,817 7,400 (3,213) 4,187 20 Technology 10,083 (3,059) 7,024 10,083 (2,610) 7,473 10 License agreements 2,100 (992) 1,108 2,100 (940) 1,160 15 30 Non-compete 1,657 (1,655) 2 1,657 (1,600) 57 4 8.5 Total intangibles $ 37,240 $ (14,406) $ 22,834 $ 37,240 $ (13,214) $ 24,026 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Apr. 01, 2023 | |
Notes To Financial Statements [Abstract] | |
Subsequent Events | Note P—Subsequent Events None. |
Description of Business and B_2
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 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 X. Accordingly, they do not include all of statements. Operating results various product lines are 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 and international economic conditions Condensed Consolidated Financial Statements should be Report on Form 10-K for our fiscal 2022, filed with the United |
Consolidation | Our Condensed Consolidated Financial Statements include the accounts of Delta We 31 % of 2023 and March 2022, 1.2 1.1 under an operating lease 0.9 this arrangement. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Three Months Ended March 2023 March 2022 Retail $ 3,157 3 % $ 2,370 1 % Direct-to-consumer ecommerce 1,509 1 % 710 1 % Wholesale 105,669 96 % 128,618 98 % Net sales $ 110,335 100 % $ 131,698 100 % Six Months Ended March 2023 March 2022 Retail $ 6,611 3 % $ 5,273 2 % Direct-to-consumer ecommerce 2,672 1 % 2,054 1 % Wholesale 208,347 96 % 235,117 97 % Net sales $ 217,630 100 % $ 242,444 100 % Three Months Ended March 2023 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 91,344 0.0 % 0.3 % 99.7 % Salt Life Group 18,991 16.5 % 6.9 % 76.6 % Total $ 110,335 Three Months Ended March 2022 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 115,335 0.1 % 0.1 % 99.8 % Salt Life Group 16,363 14.1 % 3.3 % 82.6 % Total $ 131,698 Six Months Ended March 2023 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 188,354 0.1 % 0.2 % 99.7 % Salt Life Group 29,276 22.3 % 7.8 % 69.9 % Total $ 217,630 Six Months Ended March 2022 Net Sales Retail Direct-to-consumer ecommerce Wholesale Delta Group $ 217,256 0.1 % 0.2 % 99.7 % Salt Life Group 25,188 19.8 % 6.3 % 73.9 % Total $ 242,444 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Inventories [Abstract] | |
Schedule of Inventory, Current | March 2023 September 2022 Raw materials $ 18,796 $ 22,603 Work in process 18,574 23,501 Finished goods 205,797 202,434 $ 243,167 $ 248,538 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Debt [Abstract] | |
Schedule of Long-Term Debt Instruments | March 2023 Revolving credit facility with Banco Ficohsa, a Honduran bank, 7.9 %, due August 2025 $ 3,300 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.75 %, quarterly installments which began September 2021 December 2025 5,579 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.75 %, quarterly installments which began March 2023 and are 2027 3,483 Term loan with Banco Ficohsa, a Panamanian bank, interest at the prevailing market rate installments which began October 2022 and are due through 2,754 |
Purchase Contracts (Tables)
Purchase Contracts (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Purchase Contracts [Abstract] | |
Long-Term Purchase Commitment | Yarn $ 14,985 Finished fabric 4,102 Finished products 4,797 $ 23,884 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Business Segments [Abstract] | |
Schedule of Segment Information | Three Months Ended Six Months Ended March 2023 March 2022 March 2023 March 2022 Segment net sales: Delta Group $ 91,344 $ 115,335 $ 188,354 $ 217,256 Salt Life Group 18,991 16,363 29,276 25,188 Total net sales $ 110,335 $ 131,698 $ 217,630 $ 242,444 Segment operating (loss) earnings: Delta Group $ (7,487) $ 14,417 $ (7,363) $ 22,854 Salt Life Group 4,649 3,306 4,866 3,463 Total segment operating (loss) earnings $ (2,838) $ 17,723 $ (2,497) $ 26,317 |
Segment Operating Income to the Consolidated Income Before Provision for Income Taxes | Three Months Ended Six Months Ended March 2023 March 2022 March 2023 March 2022 Segment operating (loss) earnings $ (2,838) $ 17,723 $ (2,497) $ 26,317 Unallocated corporate expenses 2,516 3,382 5,483 6,060 Unallocated interest expense 3,723 1,801 6,613 3,399 Consolidated (loss) earnings before (benefit from) provision taxes $ (9,077) $ 12,540 $ (14,593) $ 16,858 |
Derivatives and Fair Value Me_2
Derivatives and Fair Value Measurements (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Derivatives and Fair Value Measurements [Abstract] | |
Outstanding Instruments | March 2023 September 2022 Deferred tax assets $ (60) $ (48) Other non-current liabilities 240 189 Accumulated other comprehensive income $ 180 $ 141 |
Fair Value of Derivative Instruments | Fair Value Measurements Using Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs Period Ended Total (Level 1) (Level 2) (Level 3) Interest Rate Swaps March 2023 $ 240 - $ 240 - September 2022 $ 189 - $ 189 - |
Financial Assets (Liabilities) Measured at Fair Value | Effective Date Notional Amount Fixed LIBOR Rate Maturity Date Interest Rate Swap July 25, 2018 $ 20.0 3.18% July 25, 2023 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Components of Intangible Assets | March 2023 September 2022 Accumulated Net Accumulated Net Economic Cost Amortization Value Cost Amortization Life Goodwill $ 37,897 $ - $ 37,897 $ 37,897 $ - $ 37,897 N/A Intangibles: Tradename/trademarks $ 16,000 $ (5,117) $ 10,883 $ 16,000 $ (4,851) $ 11,149 20 30 Customer relationships 7,400 (3,583) 3,817 7,400 (3,213) 4,187 20 Technology 10,083 (3,059) 7,024 10,083 (2,610) 7,473 10 License agreements 2,100 (992) 1,108 2,100 (940) 1,160 15 30 Non-compete 1,657 (1,655) 2 1,657 (1,600) 57 4 8.5 Total intangibles $ 37,240 $ (14,406) $ 22,834 $ 37,240 $ (13,214) $ 24,026 |
Description of Business and B_3
Description of Business and Basis of Presentation (Narrative) (Details) $ in Millions | 6 Months Ended | |
Apr. 01, 2023 USD ($) Item | Apr. 02, 2022 USD ($) | |
Business Description and Basis of Presentation [Line Items] | ||
Number of employees | Item | 7,000 | |
Percentage of products manufactured in Company facility | 90% | |
Ceiba Textiles Manufacturing Facility Lease [Member] | ||
Business Description and Basis of Presentation [Line Items] | ||
Operating lease payments | $ 0.9 | $ 0.9 |
Honduran Equity Method Investment [Member] | ||
Business Description and Basis of Presentation [Line Items] | ||
Ownership percentage | 31% | |
Dividends from investment | $ 1.2 | $ 1.1 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales, Amount | $ 110,335,000 | $ 131,698,000 | $ 217,630,000 | $ 242,444,000 |
Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 100% | 100% | 100% | 100% |
Delta Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Amount | $ 91,344,000 | $ 115,335,000 | $ 188,354,000 | $ 217,256,000 |
Salt Life Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Amount | 18,991,000 | 16,363,000 | 29,276,000 | 25,188,000 |
Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Amount | $ 3,157,000 | $ 2,370,000 | $ 6,611,000 | $ 5,273,000 |
Retail [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 3% | 1% | 3% | 2% |
Retail [Member] | Delta Group [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 0% | 0.10% | 0.10% | 0.10% |
Retail [Member] | Salt Life Group [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 16.50% | 14.10% | 22.30% | 19.80% |
Ecommerce [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Amount | $ 1,509,000 | $ 710,000 | $ 2,672,000 | $ 2,054,000 |
Ecommerce [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 1% | 1% | 1% | 1% |
Ecommerce [Member] | Delta Group [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 0.30% | 0.10% | 0.20% | 0.20% |
Ecommerce [Member] | Salt Life Group [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 6.90% | 3.30% | 7.80% | 6.30% |
Wholesale [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Amount | $ 105,669,000 | $ 128,618,000 | $ 208,347,000 | $ 235,117,000 |
Wholesale [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 96% | 98% | 96% | 97% |
Wholesale [Member] | Delta Group [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 99.70% | 99.80% | 99.70% | 99.70% |
Wholesale [Member] | Salt Life Group [Member] | Net Sales [Member] | Reportable Segment Concentration Risk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales, Percentage | 76.60% | 82.60% | 69.90% | 73.90% |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Oct. 01, 2022 |
Inventories [Abstract] | ||
Inventory reserves | $ 14.1 | $ 17.7 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory, Current) (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Inventories [Abstract] | ||
Raw materials | $ 18,796 | $ 22,603 |
Work in process | 18,574 | 23,501 |
Finished goods | 205,797 | 202,434 |
Inventories, net of reserves | $ 243,167 | $ 248,538 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 1 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 USD ($) | Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Feb. 03, 2023 USD ($) | Oct. 01, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 231,476,000 | $ 243,483,000 | |||
Term Loan Established December 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.75% | ||||
Term Loan Established December 2020 [Member] | Banco Ficohsa [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity (Years) | 5 years | ||||
Repayments of long-term debt | $ 1,100,000 | ||||
Term Loan Established May 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.75% | ||||
Term Loan Established May 2022 [Member] | Banco Ficohsa [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity (Years) | 5 years | ||||
Face amount | $ 3,700,000 | ||||
Term Loan Established September 2022 [Member] | Banco Ficohsa [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity (Years) | 5 years | ||||
Face amount | $ 3,000,000 | ||||
Revolving Credit Facility [Member] | Banco Ficohsa [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of long-term debt | $ 9,500,000 | ||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Banco Ficohsa [Member] | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.90% | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity (Years) | 5 years | ||||
Fixed Charge Coverage Ratio requirement | 1 | 1.1 | |||
Increased Reporting Event, includes of lesser of borrowing base and maximum revolver amount, percentage | 12.50% | ||||
Increased Reporting Event, includes line cap, percentage | 12.50% | ||||
Increase in applicable margin | 50% | ||||
Cash dominion trigger event | $ 2,000,000 | ||||
Maximum borrowing capacity | $ 170,000,000 | ||||
Maximum borrowing capacity provided that no event of default exists | 200,000,000 | ||||
Outstanding | $ 153,100,000 | ||||
Interest rate during the period | 7.60% | ||||
Remaining available | $ 12,800,000 | ||||
Retained earnings free of restrictions to make cash dividends or stock repurchases | $ 19,600,000 | $ 24,900,000 | |||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | April 1, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum borrowing threshold | 7,500,000 | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | June 4, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum borrowing threshold | 9,000,000 | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | September 30, 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum borrowing threshold | 10,000,000 | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | Thereafter [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum borrowing threshold | $ 0 | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | One Month SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis point spread | 10% | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | Three Month SOFR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis point spread | 15% | ||||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | SOFR Floor [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis point spread | 0% | ||||
Amended Credit Agreement [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 25,000,000 |
Debt (Schedule of Long-Term Deb
Debt (Schedule of Long-Term Debt Instruments) (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 159,591 | $ 136,750 |
Line of Credit [Member] | Revolving Credit Facility [Member] | Banco Ficohsa [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,300 | |
Stated interest rate | 7.90% | |
Term Loan Established December 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,579 | |
Stated interest rate | 7.75% | |
Term Loan Established May 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3,483 | |
Stated interest rate | 7.75% | |
Term Loan Established October 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,754 |
Selling, General and Administ_2
Selling, General and Administrative Expense (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Selling, General and Administrative Expense [Abstract] | ||||
Distribution costs | $ 5.7 | $ 5.6 | $ 11.2 | $ 11.2 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2023 | Dec. 31, 2022 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0.4 | $ 0.9 | $ 1 | $ 1.3 | |
Stock-based compensation expense, tax benefit | 0.2 | $ 0.2 | 0.3 | $ 0.2 | |
Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Forfeited in period (in shares) | 5,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Vested in period (in shares) | 105,000 | ||||
Forfeited in period (in shares) | 18,000 | ||||
The 2020 Stock Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Unrecognized compensation | $ 2.7 | $ 2.7 | |||
Period for recognition (Years) | 2 years 8 months 12 days |
Purchase Contracts (Minimum Pay
Purchase Contracts (Minimum Payments Under Contracts) (Details) $ in Thousands | Apr. 01, 2023 USD ($) |
Purchase Commitment, Excluding Long-Term Commitment [Line Items] | |
Minimum payments | $ 23,884 |
Yarn [Member] | |
Purchase Commitment, Excluding Long-Term Commitment [Line Items] | |
Minimum payments | 14,985 |
Finished Fabric [Member] | |
Purchase Commitment, Excluding Long-Term Commitment [Line Items] | |
Minimum payments | 4,102 |
Finished Products [Member] | |
Purchase Commitment, Excluding Long-Term Commitment [Line Items] | |
Minimum payments | $ 4,797 |
Business Segments (Schedule of
Business Segments (Schedule of Segment Information) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 110,335,000 | $ 131,698,000 | $ 217,630,000 | $ 242,444,000 |
Segment operating (loss) earnings | (5,354,000) | 14,341,000 | (7,980,000) | 20,257,000 |
Delta Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 91,344,000 | 115,335,000 | 188,354,000 | 217,256,000 |
Salt Life Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 18,991,000 | 16,363,000 | 29,276,000 | 25,188,000 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 110,335,000 | 131,698,000 | 217,630,000 | 242,444,000 |
Segment operating (loss) earnings | (2,838,000) | 17,723,000 | (2,497,000) | 26,317,000 |
Operating Segments [Member] | Delta Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 91,344,000 | 115,335,000 | 188,354,000 | 217,256,000 |
Segment operating (loss) earnings | (7,487,000) | 14,417,000 | (7,363,000) | 22,854,000 |
Operating Segments [Member] | Salt Life Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 18,991,000 | 16,363,000 | 29,276,000 | 25,188,000 |
Segment operating (loss) earnings | $ 4,649,000 | $ 3,306,000 | $ 4,866,000 | $ 3,463,000 |
Business Segments (Segment Oper
Business Segments (Segment Operating Income to the Consolidated Income Before Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | |
Segment Reporting Information [Line Items] | ||||
Segment operating (loss) earnings | $ (5,354) | $ 14,341 | $ (7,980) | $ 20,257 |
Unallocated corporate expenses | 19,298 | 19,714 | 38,168 | 37,197 |
Unallocated interest expense | 3,723 | 1,801 | 6,613 | 3,399 |
(Loss) income before (benefit from) provision for income taxes | (9,077) | 12,540 | (14,593) | 16,858 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment operating (loss) earnings | (2,838) | 17,723 | (2,497) | 26,317 |
Unallocated corporate expenses | 2,516 | 3,382 | 5,483 | 6,060 |
Unallocated interest expense | 3,723 | 1,801 | 6,613 | 3,399 |
(Loss) income before (benefit from) provision for income taxes | $ (9,077) | $ 12,540 | $ (14,593) | $ 16,858 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 6 Months Ended | 12 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | |
Income Taxes [Abstract] | |||
Effective income tax rate, percent | 27.50% | 18.20% | 17.90% |
Derivatives and Fair Value Me_3
Derivatives and Fair Value Measurements (Outstanding Instruments) (Details) - Interest Rate Swap [Member] $ in Millions | 6 Months Ended |
Apr. 01, 2023 USD ($) | |
Derivative [Line Items] | |
Effective Date | Jul. 25, 2018 |
Notional amount | $ 20 |
Maturity Date | Jul. 25, 2023 |
London Interbank Offered Rate (LIBOR) [Member] | |
Derivative [Line Items] | |
Fixed LIBOR Rate | 0.0318% |
Derivatives and Fair Value Me_4
Derivatives and Fair Value Measurements (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Deferred Tax Assets [Member] | ||
Derivative [Line Items] | ||
Derivative assets (liabilities) | $ (60) | $ (48) |
Other Non-current Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative assets (liabilities) | 240 | 189 |
Accumulated Other Comprehensive (Loss) [Member] | ||
Derivative [Line Items] | ||
Derivative assets (liabilities) | $ 180 | $ 141 |
Derivatives and Fair Value Me_5
Derivatives and Fair Value Measurements (Financial Assets (Liabilities) Measured at Fair Value) (Details) - Interest Rate Swap [Member] - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Apr. 01, 2023 | Oct. 01, 2022 |
Derivative [Line Items] | ||
Derivative liabilities | $ 240 | $ 189 |
Fair Value, Inputs, Level 2 [Member] | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 240 | $ 189 |
Repurchase of Common Stock (Nar
Repurchase of Common Stock (Narrative) (Details) - USD ($) | 3 Months Ended | 42 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Jan. 01, 2022 | Apr. 01, 2023 | Sep. 28, 2019 | |
Repurchase of Common Stock [Abstract] | |||||
Amount authorized for repurchase | $ 60,000,000 | ||||
Shares repurchased (in shares) | 0 | 3,735,114 | |||
Value of stock repurchased | $ 846,000 | $ 2,143,000 | $ 56,400,000 | ||
Remaining amount authorized for repurchase | $ 3,600,000 | $ 3,600,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Apr. 01, 2023 | Apr. 02, 2022 | Jul. 02, 2011 | Oct. 01, 2022 | |
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill impairment loss | $ 600 | |||||
Goodwill | $ 37,897 | $ 37,897 | $ 37,897 | |||
Amortization expense for intangible assets | 600 | $ 600 | 1,200 | $ 1,200 | ||
Amortization expense, remainder of the year | 1,400 | 1,400 | ||||
Amortization expense, 2023 | 1,400 | 1,400 | ||||
Amortization expense, 2024 | 1,400 | 1,400 | ||||
Amortization expense, 2025 | 1,400 | 1,400 | ||||
Amortization expense, 2026 | 1,400 | 1,400 | ||||
Amortization expense, 2027 | 1,400 | 1,400 | ||||
Delta Group [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | 18,000 | 18,000 | ||||
Salt Life Group [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill | $ 19,900 | $ 19,900 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Goodwill and Components of Intangible Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 01, 2023 | Oct. 01, 2022 | |
Goodwill and Intangible Assets [Line Items] | ||
Goodwill, Cost | $ 37,897 | $ 37,897 |
Goodwill, Net Value | 37,897 | 37,897 |
Intangibles, Cost | 37,240 | 37,240 |
Intangibles, Accumulated Amortization | (14,406) | (13,214) |
Intangibles, Net Value | 22,834 | 24,026 |
Trademarks and Trade Names [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Intangibles, Cost | 16,000 | 16,000 |
Intangibles, Accumulated Amortization | (5,117) | (4,851) |
Intangibles, Net Value | $ 10,883 | 11,149 |
Trademarks and Trade Names [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Economic Life (Years) | 20 years | |
Trademarks and Trade Names [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Economic Life (Years) | 30 years | |
Customer Relationships [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Intangibles, Cost | $ 7,400 | 7,400 |
Intangibles, Accumulated Amortization | (3,583) | (3,213) |
Intangibles, Net Value | $ 3,817 | 4,187 |
Economic Life (Years) | 20 years | |
Technology-Based Intangible Assets [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Intangibles, Cost | $ 10,083 | 10,083 |
Intangibles, Accumulated Amortization | (3,059) | (2,610) |
Intangibles, Net Value | $ 7,024 | 7,473 |
Economic Life (Years) | 10 years | |
Licensing Agreements [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Intangibles, Cost | $ 2,100 | 2,100 |
Intangibles, Accumulated Amortization | (992) | (940) |
Intangibles, Net Value | $ 1,108 | 1,160 |
Licensing Agreements [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Economic Life (Years) | 15 years | |
Licensing Agreements [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Economic Life (Years) | 30 years | |
Noncompete Agreements [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Intangibles, Cost | $ 1,657 | 1,657 |
Intangibles, Accumulated Amortization | (1,655) | (1,600) |
Intangibles, Net Value | $ 2 | $ 57 |
Noncompete Agreements [Member] | Minimum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Economic Life (Years) | 4 years | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Goodwill and Intangible Assets [Line Items] | ||
Economic Life (Years) | 8 years 6 months |