Delta Apparel Launches New ‘On-Demand’ Digital First Solution

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Completes R&D Project and Long-Term Relationship with Fanatics
Increases Capacity for Future Growth

DULUTH, Ga.--(BUSINESS WIRE)-- Delta Apparel, Inc. (NYSE American: DLA), a leading provider of core activewear and lifestyle apparel products, today announced the expansion of its digital print business through the installation and utilization of newly developed digital print technology designed to meet the market demands of its unique “Digital First” offering by its DTG2Go business unit.

In collaboration with Fanatics, a global digital sports platform and leading provider of licensed sports merchandise, DTG2Go has installed this new technology in four of its existing digital print facilities. This business process is the first of its kind, revolutionizing the made-to-order business model with garment quality, print aesthetics and repeatability standards required to support the Fanatics Commerce real-time licensed sports merchandise business model. This unique digital production process will allow custom orders to be produced, packaged and shipped to the end consumer within twenty-four hours from receipt of order.

Robert W. Humphreys, Chairman and CEO of Delta Apparel commented, “It has truly been a pleasure working alongside the Fanatics team to combine our prior experiences in systems, technology and apparel to build an integrated process that meets the high quality and repeatability standards that Fanatics’ passionate customer base demands.”

Humphreys continued, “This new technology significantly increased our capacity allowing us to proudly meet the high demand for garments for fans of the L.A. Rams after their recent Super Bowl victory. Additional equipment will be installed this quarter further expanding our overall digital print capacity as we prepare for future growth with Fanatics. After months of teamwork to develop this integrated process, we are looking forward to a long-term relationship with Fanatics as they continue to service their markets with excellence.”

Danny Sweem, CEO of M & R Printing Equipment, Inc. said, “The Polaris is the new north star of high volume direct-to-garment printing and we were very excited to demonstrate its exceptional throughput that provides a retail quality product worthy of Fanatics’ standards. Delta and their DTG2Go team have been great partners throughout the development of the Polaris, and we look forward to strong growth together.”

The Company anticipates continued growth in its DTG2Go on-demand digital print services. As a result, DTG2Go is increasing its fleet of digital equipment with printers and dryers and continuing to invest in front-end technology.

For more information about the “Digital First” technology and other DTG2Go digital print and fulfillment solutions, please contact Vince Sciandra, DTG2Go’s President of Sales, Digital and E-commerce Technology, at Vince.Sciandra@DTG2Go.com.

About DTG2Go

DTG2Go is a market leader in the direct-to-garment digital print and fulfillment industry, bringing technology and innovation to the supply chain of its many customers. DTG2Go uses highly-automated factory processes and its proprietary software to deliver on-demand, digitally printed apparel direct to consumers on behalf of its customers. Utilizing its eight fulfillment facilities throughout the United States, DTG2Go offers a robust digital supply chain allowing it to ship custom graphic products within 24 to 48 hours to consumers across the United States and in over 100 countries worldwide. DTG2Go services fast-growing e-retailer channels, as well as the ad-specialty, promotional products, screen print, traditional retail, social media, and licensed apparel marketplaces, among others. DTG2Go’s nationwide digital print and fulfillment network currently includes facilities integrated within Delta Apparel’s Activewear distribution centers in Miami, Florida; Dallas, Texas; Cranbury, New Jersey; and Phoenix, Arizona. Additional facilities are located in Clearwater, Florida; Storm Lake, Iowa; Fayetteville, North Carolina and Nashville, Tennessee.

About Delta Apparel, Inc.

Delta Apparel, Inc., along with its operating subsidiaries, DTG2Go, LLC, Salt Life, LLC, and M.J. Soffe, LLC, is a vertically-integrated, international apparel company that designs, manufactures, sources, and markets a diverse portfolio of core activewear and lifestyle apparel products under the primary brands of Salt Life®, Soffe®, and Delta. The Company is a market leader in the direct-to-garment digital print and fulfillment industry, bringing DTG2Go technology and innovation to the supply chain of its customers. The Company specializes in selling casual and athletic products through a variety of distribution channels and tiers, including outdoor and sporting goods retailers, independent and specialty stores, better department stores and mid-tier retailers, mass merchants and e-retailers, the U.S. military, and through its business-to-business e-commerce sites. The Company’s products are also made available direct-to-consumer on its websites at www.saltlife.com, www.soffe.com and www.deltaapparel.com as well as through its branded retail stores. The Company’s operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 8,700 people worldwide. Additional information about the Company is available at www.deltaapparelinc.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain “forward-looking” statements that involve risks and uncertainties. Any number of factors could cause actual results to differ materially from anticipated or forecasted results, including, but not limited to, the general U.S. and international economic conditions; the impact of the COVID-19 pandemic and government/social actions taken to contain its spread on our operations, financial condition, liquidity, and capital investments, including recent labor shortages, inventory constraints, and supply chain disruptions; significant interruptions or disruptions within our manufacturing, distribution or other operations; deterioration in the financial condition of our customers and suppliers and changes in the operations and strategies of our customers and suppliers; the volatility and uncertainty of cotton and other raw material prices and availability; the competitive conditions in the apparel industry; our ability to predict or react to changing consumer preferences or trends; our ability to successfully open and operate new retail stores in a timely and cost-effective manner; the ability to grow, achieve synergies and realize the expected profitability of acquisitions; changes in economic, political or social stability at our offshore locations in areas in which we, or our suppliers or vendors, operate; our ability to attract and retain key management; the volatility and uncertainty of energy, fuel and related costs; material disruptions in our information systems related to our business operations; compromises of our data security; significant changes in our effective tax rate; significant litigation in either domestic or international jurisdictions; recalls, claims and negative publicity associated with product liability issues; the ability to protect our trademarks and other intellectual property; changes in international trade regulations; our ability to comply with trade regulations; changes in employment laws or regulations or our relationship with employees; negative publicity resulting from violations of manufacturing standards or labor laws or unethical business practices by our suppliers and independent contractors; the inability of suppliers or other third-parties, including those related to transportation, to fulfill the terms of their contracts with us; restrictions on our ability to borrow capital or service our indebtedness; interest rate fluctuations increasing our obligations under our variable rate indebtedness; the ability to raise additional capital; the impairment of acquired intangible assets; foreign currency exchange rate fluctuations; the illiquidity of our shares; price volatility in our shares and the general volatility of the stock market; and the other factors set forth in the "Risk Factors" contained in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and as updated in our subsequently filed Quarterly Reports on Form 10-Q. Except as may be required by law, Delta Apparel, Inc. expressly disclaims any obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Delta Apparel Contact:
Simone C. Walsh, 864-232-5200 x6620
investor.relations@deltaapparel.com

Investor Relations and Media Contact:

ICR, Inc.
Investors:
Tom Filandro, 646-277-1235

Media:
Jessica Liddell, 203-682-8208
DLAPR@icrinc.com

Source: Delta Apparel, Inc.

Released March 28, 2022