Shima Seiki
ITMA

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Hosiery/​Seamless

Q3 record sales for Delta Galil

Company believes its strong value proposition, diversified business model and reputation for innovation will enable it to successfully navigate challenging market conditions.

23rd November 2022

Knitting Industry
 |  Tel Aviv, Israel

Intimate Apparel, Sports/​Activewear

Delta Galil Industries a leading manufacturer of private label intimate apparel, leisurewear, and activewear, has reported financial results for the third quarter and nine months ended 30th September 2022.

Sales reached a record of $512.0 million, increasing 2% (or 6% in constant currency) from $501.1 million in the third quarter of 2021. Diluted earnings per share increased 14% to $1.32, from $1.16 in the third quarter of 2021. Net income increased 11% to $36.1 million, from $32.5 million in the third quarter of 2021. EBIT in the third quarter set a record of $55.1 million or 10.8% of sales, increasing 4% from $53.0 million, or 10.6% of sales, last year; the increase was driven by record sales, SG&A leverage and capital gains. EBITDA excluding IFRS 16 impact, increased 5% to $63.9 million, from $60.7 million in the third quarter of 2021.

Delta Galil strengthened its commitment to sustainability, while enhancing its digital capabilities through recently acquired Organic Basics. The company declared a dividend of $6 million, or $0.234 per share, to be distributed on 6th December 2022. The record and ex-dividend date will be November 29, 2022.

Isaac Dabah, CEO of Delta Galil, comments: “We are pleased to report another quarter of record sales and EBIT—particularly given current challenging economic conditions. Demonstrating the continued strength of our diversified business model, our results were driven by sales growth in constant currency in the Private Label, 7 For All Mankind and Delta Israel segments, while sales in our Brands segment and Other—which mainly includes the results of Bare Necessities—were negatively impacted by global demand headwinds, changes in foreign currency exchange rates, and inflation pressures.”

“Importantly, during the quarter we remained focused on delivering our core value proposition to our customers and shareholders. We already began integrating recently acquired sustainable underwear brand Organic Basics, and we plan to grow the business globally and into new categories in the second quarter of 2023. We continue to strengthen our digital expertise, while we strategically expand our businesses in order to best position us to develop the most innovative, high-quality products for our customers worldwide.”

"As the retail industry continues to face a difficult economic environment, we believe that Delta Galil’s strong value proposition, diversified business model and reputation for innovation will enable us to successfully navigate challenging market conditions.”

www.deltagalil.com

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