Delta Apparel To Cut 160 Jobs, Close North Carolina Facility To Reduce Costs

Delta Apparel Co. said Thursday it will cut 160 jobs and close a textile manufacturing facility in Maiden, North Carolina as part of a new cost-cutting initiative. The apparel design and marketing company said it will transition production from the Maiden facility to its facility in Honduras. The company will invest $7 million to expand its overseas operations. Once completed, the company expects the realignment to increase earnings per share by 70 cents. In the meantime, expense charges of 28 cents a share will be mostly recorded in the fiscal third quarter. "While conditions in the retail apparel marketplace have shown little improvement, we have made significant progress both financially and operationally," said Chief Executive Robert Humphreys. "Delta Apparel is now more streamlined and focused on areas that offer the greatest potential for profitable growth." The stock, which was indicated up about 1.5% in premarket trade, has soared 42% year to date through Wednesday, while the S&P 500 has gained 1%.

Copyright © 2016 MarketWatch, Inc.