Delta Apparel will open 12 Salt Life stores during the next three years, tripling the size of the chain as it moves to raise the brand’s profile, CEO Bob Humphrey said as the company released Q4 earnings.

Delta currently operates six Salt Life locations in Florida, California and Georgia; its first licensed restaurant will open next month in Fernandina Beach, FL. Licensee Swim USA also is readying a women’s swimsuit collection for spring and Ancient City Brewing is expanding distribution of Salt Life lager into the Southeastern U.S., moving it outside Florida, where it is sold through 2,000 stores, for the first time.

Salt Life-related revenue declined by $1.4 million in Q4 as the hurricanes that struck the Southern U.S. earlier this fall forced the shutdown of Delta’s Fayetteville, NC warehouse for eight days. Delta lost about $3 million in revenue as a result of the closing of the warehouse.

Delta’s net income rose 47.6% to $3.1 million in Q4 ended Sept. 30, as revenue increased 1.7% to $92.9 million, The revenue gain is partly tied to an increase in Delta’s print—on-demand business, which is focusing on producing private label products for retailers, Humphreys said.

Delta has purchased a series of print-on-demand suppliers in recent years including Art Gun (2016), DTG2GO (March) and most recently, SSI Digital Print Services in October. With the addition of SSI, which generates about $15 million in annual revenue, Delta’s print-on-demand business is expected to post $55-60 million in annual sales in “fairly short order,” CFO Deborah Merrill said.

Contact:

Delta Apparel, Deborah Merrill, CFO, 864-232-5200