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20th February 2019, Tel Aviv

Delta Galil reports record sales

Delta Galil is a leading producer of branded and private label apparel products, as well as leisurewear and activewear. Delta Galil Industries, a manufacturer and marketer of branded and private label apparel products, as well as leisurewear and activewear, has reported its net income increase by 23% to US$ 24.7 million in the fourth quarter of 2018, compared to US$ 20.1 million in the same quarter of 2017. Net income excluding one-time items increased by 36% and amounted to US$ 27.2 million for the fourth quarter of 2018, compared to US$ 20.1 million for the fourth quarter of 2017.

For the 2018 full year, net income was US$ 48.2 million, compared to US$ 49.0 million in 2017, a 2% decrease. Net income excluding one-time items increased by 19% for the 2018 full year and totalled US$ 60.5 million, compared to US$ 50.7 million for the 2017 full year.

“2018 represented a record year for Delta Galil, highlighted by strong sales, EBITDA, and net income (excluding one-time items). We are very pleased with the continued momentum in our business, which was driven by Delta Israel, a strong second half for Delta Galil USA, and fourth quarter improvements in Global Upper Market,” commented Isaac Dabah, CEO of Delta Galil.

“During the year, we focused on consolidating the acquired Eminence Group and incorporating its brands Eminence, Athena and Liabel within the Delta Galil business. Additionally, going forward we are leveraging Eminence as a growth vehicle to expand our distribution of Delta Galil’s core products.”

“In 2018 we saw continued strength and improvements in Delta Galil Premium Brands, which delivered meaningful cost savings and efficiencies from operations, and is now under the leadership of Tim Baxter. We announced in January that we hired Simon Spurr as Global Creative Director of 7 For All Mankind, and we are excited about upcoming initiatives for that brand, which will contribute to long-term growth.”

The company reported record sales of US$ 454.3 million for the fourth quarter of 2018, a 22% increase from US$ 371.6 million in the same quarter of 2017. Sales for the 2018 full year increased 10% to US$ 1,498.4 million, from US$ 1,368.1 million for the 2017 full year. The sales growth primarily reflected strength in Delta Galil USA, Delta Galil Premium Brands, Delta European Brands (including Eminence starting the third quarter) and Delta Israel.

Operating profit increased by 18% to US$ 38.4 million in the fourth quarter of 2018, from US$ 32.5 million in the fourth quarter of 2017. Operating profit excluding one-time items increased 30% and amounted to US$ 42.1 million for the fourth quarter of 2018, compared to US$ 32.5 million for the fourth quarter of 2017. For the 2018 full year, operating profit was US$ 80.7 million, compared to US$ 84.6 million in 2017. Operating profit excluding one-time items increased by 12% for the 2018 full year. The increase in operating profit in the reporting periods is mainly due to the increase in sales and the consolidation of Eminence group.

“Overall, we will continue to grow both organically and through accretive acquisitions, while focusing on areas such as Asia and South America and our direct-to-consumer business. With a strong balance sheet in place, we remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value,” said Mr Dabah.

www.deltagalil.com

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