Delta Galil Industries, the global manufacturer and marketer of branded and private label apparel products for men, women and children, yesterday reported record financial results for the fourth quarter and year ended December 31, 2013.

The company reported sales of $255.9 million for the fourth quarter of 2013, up from $246.6 million for the same quarter last year, an increase of 4%. Sales in 2013 were $974.7 million, compared to $817.8 million in 2012, an increase of 19%, representing an organic sales growth of 9%.

Isaac Dabah, CEO of Delta Galil, stated: “2013 was a milestone year for Delta Galil, highlighted by record sales and earnings, solid performance across multiple product categories and geographies, new license opportunities, and a strong balance sheet to support further progress in the future. We delivered these achievements by following our well-established strategic course: focusing on innovation, quality and customer service; driving both organic growth and accretive acquisitions; and continually seeking new opportunities to apply our competitive and financial strengths to drive shareholder value.”

“Our top-line growth in 2013 was broadly diversified, with particular increases in activewear, socks and seamless categories. We also experienced growth with key customers, increased our branded business, and prepared to enter a promising new channel for Delta Galil—wholesale clubs. Geographically, our growth was distributed across North America, Israel and Europe, including an 84% sales increase in Germany as a result of our Schiesser acquisition. We are also extremely excited about our recently signed licenses with Lacoste and Marc O’Polo.”

“We have entered 2014 with great excitement about our strong prospects. Based on our initial financial guidance, this will be our first year of sales in the $1 billion-plus range. We look forward to delivering record results as we pursue profitable growth across our product categories, private label and branded business, retail channels, and geographic regions.”

Operating income was $21.1 million for fourth quarter 2013, up 7% from $19.7 million in the same quarter of 2012. Operating income in the 2013 fourth quarter included a $2.1 million provision for leasehold improvement write-off and the impact of an onerous contract relating to the consolidation of offices in Delta USA into one new site.

In 2013, operating income excluding non-recurring items was $67.9 million, compared to $50.7 million in 2012, a 34% increase. In the year-ago, total non-recurring items included a net gain of $24.2 million pre-tax, relating to a capital gain from a real estate sale and negative goodwill relating to the Schiesser acquisition, net of Schiesser acquisition costs, fixed asset impairment and restructuring expenses.

Since its inception in 1975, Delta Galil has continually strived to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. The company  develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; extensive lines of underwear for men; babywear, activewear, sleepwear, and leisurewear.

www.deltagalil.com