Collaboration with BatSheva presenting Delta Galil products and categories. © Delta Galil Industries

Delta Galil Industries, a manufacturer and marketer of branded and private label apparel products for men, women and children, as well as leisurewear and activewear, has reported net income of US$ 14 million in the third quarter of 2019, compared to US$ 9.6 million in the same quarter last year, a 46% increase. Net income, excluding one-time items, was US$ 14.5 million in the third quarter of 2019, compared to US$ 16.6 million last year, a 13% decrease.

“We are pleased with our third quarter results, which reflect our balanced and diversified mix of businesses, products and markets. During the quarter, we benefited from positive momentum in our Global Upper Market, strong retail sales for Delta Israel and significant growth in both the Socks and Seamless categories. Additionally, ecommerce sales on Delta’s own website grew by double digits and we successfully concluded the acquisition of The Bogart Group,” commented Isaac Dabah, CEO of Delta Galil.

“Looking forward, we are focusing on further growing these business segments and improving the performance of our DGUSA and Delta Premium Brands by implementing a structured strategic and operational plan.”

Net income for the first nine months of 2019 totalled US$ 22.1 million, compared to US$ 23.5 million for the same period last year, a 6% decrease. Net income, excluding one-time items for the first nine months of 2019, was US$ 25.4 million, compared to US$ 33.2 million for the comparable period of 2018, a 24% decrease.

Sales

The company also reported a 20% increase in sales of US$ 446.1 million for the third quarter of 2019, compared to US$ 370.8 million for the third quarter last year. Excluding Bogart, which was acquired on 2 July 2019, sales in original currency increased by 6%, compared to the third quarter of 2018. Sales for the first nine months of 2019 increased by 14% to US$ 1,185.4 million, from US$ 1,044.2 million for the same period of 2018. Excluding Bogart and Eminence sales in the first six months, sales in original currency increased by 5%, compared to the first nine months of 2018.

“The third quarter represented the first time we consolidated results for The Bogart Group. We intend to leverage its strong market position going forward, particularly as we see opportunities for it to strengthen DGUSA’s product assortment,” added Mr Dabah.

“Additionally, we plan to focus on growing the Eminence ladies and kids products, while leveraging the European brands infrastructure for selling Delta products. Looking ahead, we will focus on driving organic growth, and seek new opportunities to apply our competitive and financial strengths to deliver shareholder value.”

Operating profit

Operating profit increased by 57% to US$ 26.7 million in the third quarter of 2019, compared to US$ 17 million in the third quarter last year. Operating profit before one-time items increased by 2% to US$ 27.1 million for the third quarter of 2019, compared to US$ 26.7 million for the same quarter last year.

Operating profit for the first nine months of 2019 was US$ 51.5 million, compared to US$ 42.3 million in the first nine months of 2018, a 22% increase. Operating profit, excluding one-time items for the first nine months of 2019, totaled US$ 54.7 million, compared to US$ 55.9 million for the comparable period of 2018, a 2% decrease.

2019 guidance

The company’s full-year 2019 sales are expected to range between US$ 1,650 million-US$ 1,690 million, representing an increase of 10-13% from 2018 actual sales of US$ 1,498 million. Full-year 2019 EBIT is expected to range between US$ 106 million-US$ 111 million, representing an increase of 8%-13% from 2018 actual EBIT of US$ 98 million.

Full-year 2019 net income is expected to range between US$ 60 million-US$ 62 million, representing an increase of 0-3% from 2018 actual net income of US$ 60 million.

www.deltagalil.com