DLA - Earnings call transcript Q2 2022

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Operator

Thank you, and good afternoon to everyone participating in Delta Apparel's Fiscal 2022 Second Quarter Earnings Conference Call. Please note that today's call is being recorded.

Joining us from management are Bob Humphreys, Chairman and Chief Executive Officer, and Simone Walsh, Chief Financial Officer and Treasurer.

Before we begin, I'd like to remind everyone that during the course of this conference call, projections or other forward-looking statements may be made by Delta Apparel's executives. Such projections and statements suggest prediction and involve risks and uncertainties, and actual results may differ materially. periodic the with XX-K company's XX-Qs. the Exchange Securities and to including Commission, most refer reports the filed and Form Please recent Form documents or forward-looking actual could from These contained statements. factors differ those projections to materially cause the in important identify results that except projected not statements that and any commit apparent will or any forward-looking forward-looking to if realized. of any law, it that by note are made update required Please as not be the even becomes only results statements today, as company does revise

a is As to been I'll now you, Executive reminder, and Officer, Thank Chairman begin. over call recorded. you today’s conference may Humphreys. Bob call turn Delta's Chief the

Bob Humphreys

you your and you. Delta afternoon, Thank interest for Good Apparel. thank in

a second our met high and I We are pleased and to expectations earnings be Honduras, XXXX. with we to towards results X,XXX our goals customers you give end the work quarter our of hard the you to would advancing discuss service our to and thank who us to nearly today States fiscal markets mini revenue for Salvador, United El which in to our special continue like Mexico, serve. our throughout employees the

earnings X, in represents our release, our reported ended from for the April growth XX% our As March ever quarter quarter. March XXXX second million, $XXX.X and were sales strongest quarter, prior year

per results $X.XX per $X.XX than Our of prior share. or March was diluted share more net quarter million $XX.X income double our year diluted

seeing value year-over-year. driving in for performance segment products such direct-to-consumer XX% the and and by highest-single-digit seeing unit driven Salt retail Group screen printing Our and services, strong results demand, packaging broad-based XX% higher range, This the customer the with growth second quarter growth Group increased as Delta growth being sales. continued segment adding our is strong reflect year-over-year demand Life

are growth equipment, to As future quarters. manufacturing positioning and also ongoing for to in we we invest in ourselves print capacity output, able continue increase

to continues also operational of contribute Our practice to success. discipline our

As cost. service while our our to exceptional deliver customers leveraging fixed we

prior Our Delta increased quarter, Group ability segment driven mostly experienced to value-added the costs. unit the to growth, our update in XX% by growth input higher and offset continued services year second over our pricing marketplace sales sales

business, business. active shipment product branded being with we increased sold, from prior business all development of with wear decorated keeping for up shelf. the the reporting each across our with to many year the products of strong the This capacity, support customers fully customer their and increase ready sells Within in retail products manufacturing unit demand

combat business increases constraints. the been to our supply production inflationary to price in active We very on pressures despite and are have with continue chain of able focus and wear efficiencies growth proud

the We previous in are positioned and continue week to point year history. at well per our garments than this more produce in

growth Group print both segment, sales Delta of the average sales Within saw business, and in our higher unit the DTGXGo as year-over-year selling second quarter, digital result prices. higher a

and facilities to During placement. has existing solution. the disclosed allow consumer own in with print packaged to technology we first within orders, the our Fanatics and digital order demand custom of produced, installed of will three quarter, partnership The end XX shipped been our highlight hours publicly digital our

technology digital are print We in this fourth installing a currently facility.

our footprint planning improved and vertically addition usage and meet Florida. unit allowed in XX%. also Salt quarter provide The supply investment year customer digital Lauderdale, needs has to expanded the for print that leverage of to our the sales in demand retail with continued strong in with higher allows and for operations proprietary with customers. us Our in We an and growth additionally prior during machinery driven experience integrated was locations quarter model the business. blanks, equipment chain demand second of to to Fort Sarasota Life the the segment Direct own the growing branded over lower two the Delta further which registered us continued increasing capital The efficient inventory growth Salt with our technology manage creates new opening Life working

opened an additional stores we and locations Head, doors Alabama, retail number bringing Foley, Hilton the Carolina April, to During two in XX X states. across of South

recent strategy. sales Salt the our have validate met Life Salt initial and Our strength which retail internal location go-to-market brand of our openings Life expectations the

e-Commerce are we demand consumer along channel. seeing Additionally, our with interest strong wholesale in

we While inflationary actively business. all of also managing areas we performance, are seeing our are strong pressures sales across

and staying half As throughout you of be costs an these XXXX. in ahead area see can been rising successful of we fiscal from will of results, focus second this our bottom-line the

in We Central deploying equipment further notably by in additional which in record solid output. and our installing most facilities capital are in America, manufacturing have textile business resulted our

locations mentioned, As have installed technology print in DTGXGo are and fourth previously expanding location. of we new soon digital three our our to

our exceed stores For XX of XXXX. we and retail locations to end retail the by target Salt Life, continue opened plan fiscal of to open

and the Our we our for by performance we are the strong continued results showcase growth. see excited bottom-line top opportunities business, many throughout and

me call financial for then results. Simone? our to Simone will And prior turn to the quarter I let questions. over rejoin the opening second Now review who call will

Simone Walsh

Thank you, Bob.

highest pressures. manufacturing points fixed by costs sales Life across Growth year prior the digit inflationary basis delivered quarter selling improvement for For offset cost is second segment This year business driven segments up prior XXX growth our second with of and improved process up the Delta fiscal margins by over of quarter. both prices, our leveraging $XXX.X group driven XXXX fiscal performance Salt increase efficiencies, second quarter, the the group and XXXX. XX%. XX%, million, quarter second to of the improvements, XX.X%, XX% The segment from was double by by we a

continued licensing with year-over-year increase brand the based broad strong quarter. year. a net retail prior in and in sales prior prior $XXX.X growth Specifically, the to quarter our compared Delta million $XX.X This a with in direct driven to XX% sales particularly year Group performance the year. grow XX% with XX% growing had compared apparel, wear was to to second million in active for growth channels demand sales DTGXGo second from by

continued XX% For the six year. million XX.X%. input costs March improvement prior first Delta sales, with six margins to to million year increased and and million XXXX growth. the quarter margins compared by margins $XX.X second from prior efficiencies. of the offset driven Salt Life year the for March Growth $XX.X to Growth months net the XXXX XX% for sales increase prior quarter $XXX.X growth prior were XXXX growth of The in to in the were grew of The from for Gross improvement in XX.X% impacted in segment's selling prices the retail positively with store over addition sales. segment’s over the of wholesale improved months along production period. XX.X% XX.X% year group margins to channel by increasing fiscal continued was quarter group, first revenue XX%

For favorable Salt prior improved in six first net mix the resulting XX.X% The up were including sales. of $XX.X year sales months XX.X% quarter, million $X.X of the year segment million. from sales net the $XX.X compared Salt retail a of increase over million store margins growth from second Life branded to prior sales, Group XXXX, Life

the Other of These million, prior costs of and for fiscal second the and margins our XXXX, $XX.X quarter in income a Selling, million was XX.X% the million. of administrative of of $X.X months XX.X% or year consideration a of were valuation XXXX loss of Honduran changes in XX% of assets against the consistent XXXX, compared XX.X% our quarter contingent made $X.X X quarter, million liabilities is to the expense to prior quarter. sales profits the in of $XX.X prior from sales grew million was expenses $X.X in in offset or primarily on growth sales of of higher million. fiscal by second first result to of quarter in prior related year. as investment fiscal the leveraging fiscal are the $X.X general with interest million up method year $X.X second compared For equity second This savings sales fixed second the of second Interest quarter million. $X.X disposal year.

year. $XX.X year. At XX.X% or quarter, an per X.X tax quarter the year X.X full quarter million were second approximately from of diluted $XX.X for prior increase compared operating the compared XXXX net quarter million XX.X% rate $X.XX the $X.X in of inventories profit million March end. from this achieved times to We XXXX million year, for increased to prior second tax quarter up Operating second of anticipate of of $X.X $XXX.X Inventory Our in be XX%. was the the million $XX to or million per earnings down prior $X.XX rate from our effective was to September up prior and the million year end in quarter We from from the $XX.X share the down the share XXX% the March were XXXX. last diluted times turns profit.

are We manufacturing levels. at producing manufacturing and output now record our have increased

increase million of U.S. input September principally in is a our million costs investments are to resulting $XX.X now Our further in output, million This increased well million $XX.X while net expand to March print XXXX. and and to our financially at availability total inventory business increasing decrease and strategic September other for credit will raw on driven transportation positioned under material, technology manufacturing needs. from also cash $XX.X our $XXX.X at initiatives. from is hand growth, working turn our capital providing Total XXXX. labor the allocation. to flow I value availability a XXXX digital by increased reflection debt Overall, we capital in invest facility from revolving March Cash costs. XXXX, decrease

we strategy long-term capital. Our in unchanged remains about how deploying think

will First our we invest business. and foremost, in

fiscal for XX addition target of by to invested expansion spending been the second, During our XXXX, second $X.X Salt Life company second expenditures. manufacturing to $X.X company back the the active previously of approximately to repurchase our capital purchased print capacity in the the of repurchase our million share repurchase the million had of the wear This repurchase our of continue in shares. least total the focused retail on capital program, fiscal achieving quarter, XX,XXX DTGXGo form existing In mainly at its fiscal for retail the XXXX. support million business, authorization. store of to second we business end And announced of At capacity remaining support equipment stores quarter business continued shares bringing our into under under XXXX to million. we the $XX.X quarter XX.X end has and openings of open amount

are half demonstrating customer strong encouraged with sales and on offerings. strong of the our pleased we first performance, the of demand fiscal As business, additionally on our meeting excellence. of and breadth segments bottom-line operating diverse our both with emphasis we consistent reflecting are across the market reflect of the We performance XXXX, ongoing success

our line approximately $XX in manufacturing business. Importantly, will to XXXX. in our Life we openings, to to for call inflationary anticipate Bob. digital pressures Salt and across as spending manage we now further face continue and back over print, location We invest fiscal turn retail I bottom plan million capital expansion the

Bob Humphreys

our Thanks, of and seen a resiliency inflationary Simone. pressures despite labor continue I we as have performance strong chain to supply company be and disruption. the financial by shortages, the impressed organization

meeting on year to We well deliver expectations internal position have the our targets. year started full our in

Salt been by in go-to-market investments the Brands, current to see economic strong manufacturing the the continue channels of serve. Throughout increases, both across supported able and the Life production the and demand. five consumer vertical results Global and all have Direct, DTGXGo to through to company, complimented increased Delta entire focus strong or strategies, Direct, by and cost segment the supply results. environment that controls manage price Retail we chain we And enjoying led demand through our have line we Delta segment capacity our Our efficiencies

XXXX After our year reach our well fiscal On Looking that are results, and discussed you positioned second open year. out our half of full last strong growth call record the for profitability. placed to we are we we earnings digit up can anticipated the first for call, line growth And double well now the half we and questions. into fiscal feel for operator, XXXX, revenue our objectives. top full earnings further

Operator

from with first Our Dana Telsey Group. question comes Advisory Telsey Instructions] [Operator

Dana Telsey

terms some terms in terms we increases you the as Would openings? Life you're And Delta the move when where of unit what order there, on price price and get as to trends price then in satisfy of Group, love store about increases? more color growth, Salt demand? of are the you the thinking year the some how product And through you more through being balance in able increases, to looking are for color of think of and sell

Bob Humphreys

high are So cost selling the digits being we units units through we processes, higher single higher the go about chain. value then of in the and in the passed seeing supply up talked Delta adding in along prices things sold, Group

obviously the whole. in had the service able for demand and the say to industry we I'd strong as improving quarter ship us that So during a levels are we're

think I true. that's probably

So, that's final this processing installation certainly well, week. is equipment new really we've our output week next and along and helped being live and higher going got

We not in we manufacturing should our So to continue able still are output. to be slightly increase fully stock.

basic or extra-large something for we that. like have So might t-shirts example, black

once support execution in like at fully can our to it like takes we work stock still we and So customers more planning and everyday, where in business would their to. be more more

that Salt on margins done nice units of can of from I costs all we helped. Life XX% vertical You input that in a managing think Salt sourcing has we've being the see about Life's job sell

on in more leverage taken see that week so can or at price. how we'll And on lowers thing it's drive Salt decisions in future good have anyway, increases business resulting I'd that fronts, be price our Salt the helps retail We so making in margins reflected you seasons. the and the in that next more and Life, the we're some But far so Life, other by units cost. that getting through SG&A going and those say

Dana Telsey

then levels, going year? fiscal we do for into as you the inventory forward? appropriate do see levels see back move And you levels inventory What as where the the

Bob Humphreys

to year peak time tees. strong in our two, So what we're another on undecorated close a would go we units of might consider up period the basis, inventories getting we're and probably for or shipping

be get will starting rest fiscal to for the those calendar this through we rebuilding year next as then so year. start And and contract of we'll

in business brands and strong retail our very a direct. have We our Delta

we And and businesses growing levels so, that are orders be inventory completed. have once out those some growing we'll ship

Dana Telsey

just And Delta is of wholesale lastly, Group the particularly business strength the impressive.

from? are seeing strength customers. customers the you are Where existing New coming

Bob Humphreys

to channels they pandemic, So are different back that manufacturing we those seeing demand for level, within very strong at those look really the came kind of corporate are as number was that but first we're helpful business, things. of time there and this coming out I a Coming to now channels think, the of would now. that for pandemic. get say channels it quarter I spending, in pre what first all we're and were back like us the some is really back Restarted our laggards, and were some

back very are a So we really business to there. balanced

Dana Telsey

do a around that see for of you the just And drivers? the certainly I Got which quarter What key look is the uptick. as very then nice margin at some margin? Group, it. sustainable think Delta here operating in particular at this in sat operating is level I What which XX.X%, as

Bob Humphreys

one of key right leveraging high So why now. that there's And cost. it's fixed our is drivers or two three

so And on our SG&A see line. that you can

product see getting on where can fixed You just bottom through costs a our line it drop we're through and margin gross it the overhead helps more line.

sold. higher of hitting our helping, our going higher in to input our I some prior So goods cases, units we've in pricing our costs cost think gotten through

the rise. to be year, get in continue as balance we'll continue fiscal so that input And through quarters working we the costs of on because this to

yet roll finished country transportation coming think, yet to as and probably higher So Apparel costs, seeing of into goods the Apparel labor general Delta sold, higher that we business the out. is not in costs, cost not and higher with costs, I and

Dana Telsey

drivers as operating uptick Salt with of And that you the Life, in any there? margin key of the there the see sustainable

Bob Humphreys

Yes, I think they are sustainable.

affect So our sourcing business our costs, -- costs, thing. is planning the But key some really of that costs, selling more of back things increases, fixed couple same of are accounting in our leveraging the price our a they'll distribution our unit higher costs. in year growth but It's costs, us half our prices.

how gross those all and and nice ultimate really Salt to have operating things improve. margin see So continues Life to that been of margin

Operator

Our with Jonathan, proceed Private comes your a Investor. from Paul next question Please question,

Paul Jonathan

no a your capability Just supplier? has deep Who level? Are your they the Are technology want say competitor you in the I a out to there the at supply didn't understand go longer positioning competitor? and of to with capacity there? think it would is to and area. use direct also they technology. else you Who guys a -- out the some

Bob Humphreys

every we've a some believe last we equipment, of it So [Courtney] products there's that months digital on bit better And it, of and print XX in good additional run day. we some marketplace. have the is supplies that we and in deployed today's types technology

their of use So strategies. specific it specific and customer products go request market we types for to and

I we're both R&D processes of And the specialized some the we manage this has that manage quality helps the internal think have on as the and and we today, us technology those sit here that marketplace. in only supplier that. manage

So, there'll think but ahead markets of the be out now right different types for we game that of there, of serve. more equipment we're the

Paul Jonathan

the some own some you've equipment equipment and the from your is more recently. developed on of [Courtney] of So

Bob Humphreys

of being So have some And development the that installed the R&D of site equipment. we nine were over equipment for we today. We didn't last the more a the months necessarily. the installed have significant develop onsite amount and

Paul Jonathan

manage about whether is margins that cotton, may the hedging a $X.XX accounting. Regarding uptick due something pound think that? there, nice you hedge is FIFO Can you of that. or I your crazy some that? a also How talk you like the be certainly to although do of like And

Bob Humphreys

journey. interesting an always cotton's Well,

So we future. the cotton we hedge in consume cotton do

once you're but short really cotton, anymore. you because So do, in not our really disclose we always hedging hedging don't strategies theory we're

Paul Jonathan

margins your the the to accounting? about way What relating FIFO --

Bob Humphreys

Well, been the months think in price you then we've margin taking think increases think six the and of if you the active about for quarter, rest of I about first current year, the the across year.

that across that increases you cost so slight the some price have timing and differences be would some And expect there'll will quarters.

So that the following. expect you quarters would see to margins in impact

Paul Jonathan

debt and it's you a in of is what interest but the to still and the first amount the finally, down? sales then roughly growth doing cost an terms that, you're now, what is the plan rate all, to margins have debt. plan -- what is What you in and that fair in And right pay impressive of of terms of all that

Bob Humphreys

Well, got we've if for you've watched long, us of decades debt. having

not some think probably It's Some maybe low average cost X% people think much. relatively debt enough, the today too pretty and range. in and X.X% cost flexible,

a have the does debt We dollar generating that on of not we're little company. but use bit we XX% parent offshore every of guarantee, in return the north

we lever capital if XX%, XX% probably of can earning XX%, overall So at That's helps money shareholders. for X.X%, the borrow we're today really what return it using of on employee.

Paul Jonathan

And can little then develop on more that more way, does helped the And finally include a printing by about the recently. Fanatics, that you've that technology bit you new business? talk

Bob Humphreys

Fanatics set they're what yes, customer was they side about. and their they're expectations talking had fun And they it's They're that it’s So side-by- high and the standards and high can want and what them. for that to most base we with work know and with and quality importantly, they energetic us developing technology. for

we it's fanatics development behind ongoing that as was that and of use And we a equipment, speak that's we how basis about make the only to it. the went product. so and And lot

Operator

question with Capital. Mara next Douglas River comes from Sam Our

Sam Douglas

Hi, the congratulations quarter. on

digital the a quick business. Just question had around

to next how the new can around see to business, also additional new wanted more help of us if scope could you and get if this could the any give big business, over years? any give couple metrics retail then Just information you the digital

Bob Humphreys

some I'm frame I'm of trying just to something Yes, you. information think for that would

the as in DTGXGo here we've and nature So expect XX grow business, we're fiscal that our and to be grown to in year. will would And basically that going to the of shipping time have business have it's seasonal year-round have output, that more sitting too. of we deployed Because business will the expect of more days, there we on double-digit business to going rely next capacity, our this to a equipment that's this continue least based heavy to today strongest demand not the that third suing so season grow continue less the quarters increase But there. our rate we to on to at quarters holiday still the a come make for year. just the get we'll

would really new still business Unlike putting we major and and the the e-retailer on and IP platform. will go-to-market. it household or Appy we're just brands were and And addition other where But sites business versus buy in to majority of was historically by a besides where their offering pace apparel at They're positioning a there's directly I that and so do a nature of brands, of Fanatics this and major Fanatics, coming in branded to this consumers business slower is retailers, of that, say overall to graphics that doing see that art business a people are people how having number maturing they're the onto level into their consumers. with brand support holders. just this, supporting the major what in of but

Sam Douglas

Okay. the group the I do overall, compared fairly retail guess you that And then, overall digital I this guess, to just business to business expect the to margins be group? Delta on

Bob Humphreys

distribution and, we time, money in think lease centers spent months and actually the I in Reno, up. R&D, lot small the a had this will it and our it, over quarter that older it a the past development last closed equipment was six distributions within was one of we on facility of one not our and of

disposed equipment there. of we some So

anyway, edge we business operating up mark, least that leading in So equipment our modern do to technology. keep and generate it expect full. it's we'll at with when low-double-digit current running But

Operator

Willin Jamie with question next Management. is Willin from Our

Jamie Willin

in or you how announced in the out to come due come quarter, increase Adding quarter to much middle rolling in on How of the -- first Fanatics of they were the Fanatics. was that are your quarter? they relatively or this force questions gradually in they the of do much on full

Bob Humphreys

Well, facility that you a was had Courtneys like had of in And own to it. for will down. in public I closed say know, their our fairly speak digital --- large during it's the but that information because Florida quarter, Fanatics don't customers, I Jacksonville, they facility print

still of And of, were that all some own obviously were product now, type of are new of running because the so, they facility, we that equipment. they running really running their in our on facility

a was speak we're and quarter sequentially it really, just then. spawn on the really that it season But be holiday up So we'll before as December continued on coming the And peaking quarters the ramp holiday. with during up since and continues today. grow during we expecting to

Jamie Willin

increasing talked about you've the inventory. And

Are in increased customer for given satisfy can but demand you in all keep the you as various And up an have business? have capacity, you able digital demand high now everywhere? the t-shirts You the can to with internalization rate businesses? growth

Bob Humphreys

good that's so Well, not businesses, in the all a question.

now. retail growing as we've are product can't but about right for in that a talked more of number make so asking distribution, And is businesses, it this we people we direct years brand our actually, with a of particularly across direct strong lot certainly is pandemic hemisphere made and there's demand that now, for post a make demand but channels and and for and several

our fully them have all to once or how and available to economic we those the having time business manage time make And to well, times channels servicing shocks more over seen having and stocked allows so too. t-shirt we how versus flexibility sell figure Because over us different to in system. and at we out that have

we as textile to print today. in spring Salvador. want new El have equipment servicing being spring And up we reached print have speak we Honduras record we sewing of But have and equipment production, plants in outputs all we speak that. in -- sewing our additional we in plant new in keep as installed of just So starting and our

and are to we evaluating our waste increase anyway, output further. So it increasing

Jamie Willin

far leading as on I the you're were following doing price limb, or or you industry prices, kind people? Bob, I am your similar And as you're increasing sure only increases out not industry of it one a the assume to other the

Bob Humphreys

for Yes. But you maybe product price would some for four that us little once business. they a we obviously stock back it three in if ago, if got have at I reasonably say, and everybody or similar price quarters led is increases there. it bit went probably ahead selling

Jamie Willin

Got within it. And your Bob, have existing historical Salt were that when new how to Are you had that new the lastly, productive, the stores, come rate they similar incredibly ones ones you out? stores? Life the would new some numbers

Bob Humphreys

Yes.

to they're the So say are but to not going all start. incredibly very a true like productive. strong productive. a all others all incredibly start. And Most some Head’s be of good ones to too, opened for new that's look the it's they're seeing that I Hilton would are really we just recently and

has store there, issues. expectations, slow bit little to been some but Texas weather Our and crews issues our a hip had we've

of all So just it. locations, the we we're new couple excited about and about opened up recently more anyway good that a have feel got

Jamie Willin

over the objective would many what's time? like to open you Okay. each year? stores And How

Bob Humphreys

to to going going with the and of Fogel like Advisors. from is ought year Our see we Bill pause different question be can we're X right Instructions] able years. your point. at X how number certainly next [Operator do DV take and this Well, productive next feel a find we to But stores levels, comes Operator to to locations the just for

Bill Fogel

me? hear you Can Hello?

Simone Walsh

Bill. Yes,

Bill Fogel

solution? obviously if of a revenues the now How for in pay bit. guys frame hoping some try to because attention instance your for of expects don't year. useful could eventually Okay. now little in the broke But Great business. something I are we hope than we're kind for like addressable of hope be we millions and market those put much guys revenues I forward, of think starts reading you job. X revenues players potential out from But this and fanatics at think I billion Fanatics going hundreds to this more would opportunity just wanted like was other to the you have it to I that to DTGXGo

Bob Humphreys

in I there's that real progress Fanatics, significant sell addressed required can a all customer a know and And and good don't to really a on. it see product, and you we're on print to that's just for and put that's be some to it. invested to amount model. business within haven't I a that it's making hours, your could and the for ship yet, service immediately, can to to and then working container going but that in partner's that and speak get you good you pretty labeling And they're it can a league you're when you it XX whichever expecting, paid going XX and package matrix sports

And just I standards that of can make do continue demonstrate that economic we share model grain work it's sell. as we when together. of doing for make we washability for to can that they then care, we our long great and success and products more and can of continue them Again, that a in and market expand as think quality ship and to gain capabilities to us can meet what long-term that the of their so type and

Bill Fogel

with going have independent other potential that. capacity of that? conversations facilities of joint And terms about them? facilities? to have How of on we the in what's or you customers opening for in start that should think Or to talked you're you that kind big new we And do you timing

Bob Humphreys

number with of started names. have we household new So production a

a of than some slower them pace at Some chosen Fanatics. different start obviously pace than a others have to and

capacity quarter we'll think invest today out at we'll other distribution two, into we to where with continue to there. have to have in our through one that in market go to we U.S: want the and deliveries well markets manage but serve next opportunities Certainly, there's to the partners. place satisfy them look these day And will and in to we the equipment have equipment digital that be print service. so, two demand we or to and continue and to footprint where and might continue equipment, as And

Bill Fogel

on are based go these revenues in you How ordering what's your to players trajectory, all build assuming capacity grow size? in fast out the and can DTG maximum

Bob Humphreys

of a there's a that know time. capital don't maximum, it's in I Yes, matter

we're right now. So, still

Bill Fogel

for how So you quick Production? next up like year mean, this can I and for ramp

Bob Humphreys

I the or with quarter the think fiscal probably that to grow following in continue we'll XX% accelerating year. rate it next two a about

Bill Fogel

this from in guess gathering, meaningful incorporating XX% I'm a wasn't was new good of these I And players that growth rate the everything quarter, Fanatics or but layer. any

So forward. kind should going growth tremendous we of see

Bob Humphreys

It the Fanatics business. the of began incorporation

Bill Fogel

progress forward to further and time. thank very much look I for then your you So see

Operator

turn question-and-answer We back over the to have comments. closing of call for now session. reached to Humphreys the like end Bob I'd the

Bob Humphreys

Thank appreciate thanks three your the and quarter. interest forward Well, talking look Apparel, for and another you on months to you. questions in about Delta we'll feedback. And to

Operator

concludes today's conference. This

your participation. disconnect may you for You your this lines at thank and we time,

Delta Apparel (DLAPQ) 4 May 222022 Q2 Earnings call transcript