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Delta Apparel's (DLA) Buyback Program Disappoints Investors

Zacks Equity Research

Share repurchases have been an important strategy for Delta Apparel, Inc DLA for creating value for its stockholders. The company recently announced an additional $10 million share buyback program, which increased the current authorization to $50 million. Year to date, the company has bought back shares worth $38.7 million, and is left with $11.3 million under its ongoing program.

However, the news failed to perk up investor sentiment, as shares have declined 1.2% during the trading hours on Sep 18. Although the company striving to bring itself back on growth trajectory, its efforts are not generating desired results. Consequently, shares of this Zacks Rank #5 (Strong Sell) company have declined 5.4% in the last three months, underperforming the industry that gained 6.5%.

Overall, the company has been focusing on expanding its Activewear business that has been depicting solid growth, lately. It has also been investing in its e-commerce platform to offer better services to customers, as well as upgrading its equipments and retail store layout to drive greater traffic.

 

However, the company is witnessing some challenges of late. A number of retail channels of the company, including Salt Life and Art Gun, have been depicting inherent weaknesses owing to retail bankruptcies, customer loss and delayed launches. In April, the company sold its Junkfood Clothing Company to reduce debt burden.

Done with Delta Apparel? Check These Trending Picks

Investors may want to consider few better-ranked stocks from the same sector. Central Garden & Pet Company CENT and SodaStream International Ltd SODA sport a Zacks Rank #1 (Strong Buy), while Guess? Inc. GES carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Central Garden & Pet delivered an average positive earnings surprise of 122.1% over the trailing four quarters. It has a long-term earnings growth rate of 10%.

SodaStream International delivered an average positive earnings surprise of 104.1% over the trailing four quarters. It has a long-term earnings growth rate of 7.5%

Guess? delivered an average positive earnings surprise of 20.6% over the trailing four quarters. It has a long-term earnings growth rate of 17.5%.

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Central Garden & Pet Company (CENT) : Free Stock Analysis Report
 
SodaStream International Ltd. (SODA) : Free Stock Analysis Report
 
Guess?, Inc. (GES) : Free Stock Analysis Report
 
Delta Apparel, Inc. (DLA) : Free Stock Analysis Report
 
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