We are catching up on Q4 and full year results for Salt Life, which is owned by Delta Apparel.
Salt Life’s strong growth once lockdowns lifted illustrates how all things beach-related appear to be resonating with consumers during the pandemic.
The brand’s revenue increased 12.5% for the fourth quarter ended Oct. 3. Sales expanded in all channels, including e-commerce, Salt Life branded stores, and wholesale.
Customers flocked to Salt Life stores in the late summer months, especially in drivable vacation destinations. Comparable sales at Salt Life stores grew double digits, while total retail sales jumped 125% due to strong comparable sales as well as new store openings.
The company now operates 12 Salt Life stores in Florida, Georgia, South Carolina and California and more stores are planned.
For the full year, e-commerce sales jumped 50%, with an 80% increase in the back half of the year.
Delta executives were very excited that more consumers were connecting to Salt Life. They pointed to the big increase in the number of people who opted into Salt Life’s email list, which grew 130% for the year. In Q4, more people signed up Salt Life’s emails than in all of 2019.
For the full year, however, total sales declined 13% due to pandemic lockdowns.
Full year gross margin declined to 43.6% vs. 46.7% the previous year due to higher tariffs and freight costs.
Looking ahead, Salt Life sees opportunity for continued growth in e-commerce, in its own stores, and at wholesale by receiving more floor space in stores.
“Salt Life has a long runway of future growth ahead,” Delta Apparel CEO Robert Humphreys said on the earnings call.
