Profile: Delta Apparel Inc (DLA.A)

Delta Apparel, Inc. (Delta Apparel), incorporated in 1999, is an international apparel design, marketing, manufacturing and sourcing company that features a portfolio of lifestyle branded activewear and headwear and private label programs. The Company operates in two segments: branded and basics. The Company specializes in selling casual and athletic products through a variety of distribution channels. Its products are sold across distribution tiers and store types, including specialty stores, boutiques, department stores, mid and mass channels. The Company also has distribution at college bookstores and the United States military. The Company’s products are made available direct-to-consumer on its Websites at www.soffe.com, www.junkfoodclothing.com, www.saltlife.com and www.deltaapparel.com. Additional products can be viewed at www.2thegame.com and www.thecottonexchange.com.

The branded segment consists of its business units focused on specialized apparel garments and headwear to meet consumer preferences and fashion trends, and includes Soffe (which includes The Cotton Exchange as the bookstore division of Soffe), Junkfood, To The Game and Art Gun. These branded embellished and unembellished products are sold through specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, college bookstores and the United States military. Products in this segment are marketed under its lifestyle brands of Soffe, Intensity Athletics, The Cotton Exchange, Junk Food, The Game, Salt Life and Realtree Outfitters, as well as other labels.

The basics segment consists of its business units primarily focused on garment styles that are characterized by low fashion risk, and includes its Delta Catalog and FunTees businesses. Within the Delta Catalog business, the Company markets, distributes and manufactures unembellished knit apparel under the main brands of Delta Pro Weight and Delta Magnum Weight. Delta Catalog products are sold to a diversified audience ranging from large licensed screen printers all the way to small independent businesses. The Company also manufactures private label products for branded sportswear companies, retailers, corporate industry programs, and sports licensed apparel marketers. Typically these products are sold with services, such as hangtags, ticketing, hangers, and embellishment so that they are fully ready for retail. The majority of the private label products are sold through the FunTees business.

The Company’s Soffe designs, produces, and markets active apparel for consumers of all ages, ranging from toddler to adult. From cheerleading to dancing and field play, Soffe’s junior merchandise is used by young women. Its XT46 collection is inspired by the soldier, the original athlete, and underlines as an official outfitter of the United States military. The Company’s United States made collegiate products marketed under The Cotton Exchange can be found at on-campus and off-campus bookstores across the country. The Company also provides performance products and sports team uniforms under Intensity Athletics to support team dealers and sporting goods stores.

The Company’s Junk Food is positioned in the marketplace as the original vintage t-shirt company with global distribution and rights to over 800 licensed properties in a diversified distribution model both domestically and internationally. Junk Food has two primary product lines, its Junk Food and its True Vintage line, along with a designer collaboration with Gap Kids. The Company’s The Game is an all-American sportswear and headwear company. Its products are sold nationally through sporting goods, college, outdoor, and specialty stores in addition to team dealers and online, where customers can create custom headwear designs. The Game has two signature headwear designs, The Bar and The Circle. The Company has exclusive licensee of Salt Life apparel, headwear, decals, bags and other accessories, and holds an exclusive master apparel license for Realtree Outfitters and Realtree Girl brands.

The Company’s Delta offers basic apparel garments for the entire family under its primary brand names Delta Pro Weight and Delta Magnum Weight. Delta products are offered in a range of colors available in six-month infant to adult sizes up to 4X. The Pro Weight line represents a diverse selection of mid-weight, 100% cotton silhouettes in a large color palette. The Magnum Weight line is designed to give the Company’s customers a variety of silhouettes in a heavier-weight, 100% cotton fabric. Its FunTees designs, markets and manufactures private label custom knit t-shirts primarily to branded sportswear companies, including Nike, Quiksilver and Columbia Sportswear. The majority of the merchandise is embellished, and it offers customers a variety of packaging services so the products can be shipped store-ready.