Delta Galil sales climb 36%

The sales of Delta Galil, global manufacturer and marketer of branded and private label apparel products for men, women and children, has climbed 36 per cent to $340.5 million in the second quarter of 2017, compared to $249.5 million in the same quarter last year. The company's operating profit also increased 31 per cent to $17.7 million in the second-quarter period.

Net income reached $8.9 million in the second quarter, compared to $7.8 million in the same quarter of 2016, representing a 14 per cent increase. EBITDA also rose 35 per cent in the second quarter and amounted to $25.5 million, compared to $18.9 million in the same quarter last year.

"Delta Galil delivered an exceptionally strong performance in the second quarter, reflecting double-digit growth on the top- and bottom-line. Our results were driven by well-defined strategies to build our premium and branded business, expand our market reach, extend our manufacturing resources, and be an ever increasing source of innovative, high quality, differentiated products for our customers and consumers worldwide," Isaac Dabah, CEO of Delta Galil, stated.

"During the quarter, we saw significant growth in Delta Galil US, mainly kids and activewear categories and in the global upper market. Importantly, the gross margin in Delta Galil US increased across all business units. Delta Premium Brands, our recent acquisition, continued to exceed the plan," added Galil.

For fiscal 2017, sales are expected to range around $1,330-$1,370 million, representing an increase of 13-16 per cent from the actual sales of $1,179 million in 2016. Full-year 2017 diluted EPS is expected to range approximately $1.95-$2.02, representing an increase of 5-9 per cent from actual EPS of $1.85 in 2016. The company's net income will be around $50.0-$52.0 million for fiscal 2017.

"Throughout the quarter we continued to invest in growing our production capacity, and are currently running our Vietnamese factory with 850 employees. We expect to reach full operational status in the facility in the second half of 2018. Looking ahead, we are focused on growing our international and e-commerce businesses, while continuing to pursue strategic acquisition opportunities," concluded Galil.