Delta Galil Industries has reported a record-breaking first quarter for 2025, with strong growth in sales, profits and operational efficiency. The Israel-based global apparel manufacturer achieved sales of $498.7 million, marking an 11% increase over the same period last year. This represents the company’s fifth consecutive quarter of year-over-year growth.

Online sales of Delta Galil’s own brands rose by 21%, further boosting performance across all segments and retail channels. Gross profit expanded by 6% to reach $202.6 million, although gross margin slightly decreased to 40.6%, mainly due to increased freight costs, foreign currency impacts, and a reduction in export subsidies in Egypt.

Earnings before interest and taxes (EBIT) grew by 26% to $32.7 million, while net profit surged 46% to $17.6 million. Excluding non-core items, EBIT and net income increased 11% and 22% respectively, reflecting both revenue growth and tight cost controls.

The company’s balance sheet remains solid, with a net debt to EBITDA ratio of 0.7x and $91.9 million in cash. Shareholders’ equity reached a record $817.7 million as of March 31, 2025. A dividend of $8.0 million was declared for Q1, with payment scheduled for June 10.

Delta Galil CEO Isaac Dabah credited the results to ongoing innovation, quality, and sustainability efforts, along with a strategic manufacturing footprint that mitigates tariff exposure. Despite a more challenging macroeconomic climate due to evolving U.S. trade policies, Dabah expressed confidence in the company’s ability to continue its multi-year growth strategy.

While the company has withdrawn previous financial guidance in light of new U.S. tariff legislation, it is actively optimising sourcing and production to offset impacts, aiming to limit any hit to 2025 operating income to no more than $20 million. Cost-saving initiatives are expected to reduce annual operating expenses by up to $7 million.

www.deltagalil.com