We are a diversified branded apparel company and operate our business in two business segments: branded and basics. Although the two segments are similar in their production processes and regulatory environment, they are distinct in their products, distribution methods and economic characteristics.
The branded segment focuses on specialized apparel garments and headwear to meet consumer preferences and fashion trends. Primary brands include Soffe®, Intensity Athletics®, Junk Food®, and Salt Life® as well as other labels. Branded embellished and unembellished products are sold through a variety of distribution channels, including specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, outdoor retailers, college bookstores and the U.S. military.
The basics segment focuses on garment styles that are characterized by low fashion risk and includes the Delta Catalog, FunTees and Art Gun businesses. It markets, distributes and manufactures unembellished knit apparel that is primarily sold to screen printing and promotional products companies, as well as to licensed apparel marketers. In addition, it manufactures private label products for major branded sportswear companies, retailers, corporate industry programs, e-retailers, and sports licensed apparel marketers. Art Gun produces custom private label garments through digital printing. These products are typically sold with value added services, including embellishment, hangtags and ticketing so they are fully ready for the retail shelf.
Delta has a vertically integrated manufacturing platform with production facilities in the United States, El Salvador, Honduras and Mexico that support both its branded and basics segments. The Company designs and manufactures the majority of its products, which allows it to offer a high degree of consistency and quality controls as well as to leverage scale efficiencies. One of its strengths is the speed with which it can reach the market from design to delivery. The results of the manufacturing platform are reported within the basics segment.