Delta Galil Industries has reported second quarter 2025 sales of $470.1 million, broadly in line with the same period last year despite the combined challenges of U.S. tariffs and regional conflict.

The Israel-based apparel manufacturer achieved a record second quarter gross margin of 42.8%, supported by a strong performance in direct-to-consumer channels, which rose 9% year-on-year. Own-web sales, excluding Bare Necessities, grew 29%, marking the tenth consecutive quarter of double-digit increases.

EBIT fell to $31.0 million from $37.8 million in the prior year, reflecting higher selling and marketing expenses and costs associated with the company’s expanding direct-to-consumer operations and the Passionata brand. Net income for the quarter was $16.7 million, compared to $21.0 million a year ago.

CEO Isaac Dabah described the results as solid given the tariff headwinds, noting that the group’s vertically integrated model and global footprint, including its Egyptian hub with low-tariff access, position it to capture future market share.

Equity reached a record $852.0 million at the end of June, compared to $771.8 million a year earlier. Delta Galil declared a dividend of $8.0 million for the second quarter, to be distributed on 9 September 2025.

Looking ahead, the company has revised its full-year guidance to reflect ongoing tariff pressures, with projected sales between $2.11–2.135 billion and net income of $97–101 million. Management expects to mitigate tariff effects through optimised sourcing, production and customer partnerships.

www.deltagalil.com