P.J.Salvage
Global manufacturer and marketer of branded and private label apparel products for men, women and children, Delta Galil as well as leisurewear, activewear and denim, reported yesterday its financial results for the fourth quarter and full year ended December 31, 2020.
- Q4 sales were $459.7 million in 2020, compared to $504.8 million in 2019, a 9% decrease due to the effects of the COVID-19 pandemic.
- E-commerce own website sales rose 183% for Q4, up 130% for the full year.
- Q4 2020 gross margin increased by 300 basis points to a record level of 40.1%, versus 37.1% in Q4 2019.
- Strong balance sheet highlighted by $231.7 million in cash, and $476.4 million in equity as of December 31, 2020. Net financial debt declined by nearly 30% to $236.3 million, versus December 31, 2019 level.
Isaac Dabah, CEO of Delta Galil, stated:
“Without a doubt, 2020 represented an unprecedented year for Delta Galil, as COVID-19 forced us to rethink ways in which we conduct business. I am pleased with our agility to respond to the pandemic and implement the necessary initiatives to reduce costs and improve our operational and financial flexibility. Consequently, we saw record gross and EBIT margins in the fourth quarter, and record operating cash flow for the year, demonstrating a strong combination of Delta’s rapid online expansion, coupled with the strength of our brands, loyal customer base, and the effects of our strategic efficiency measures, which we foresee continuing in the future.”
The company develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; extensive lines of underwear for men and branded Men’s underwear including the brands Schiesser, Eminence, Athena & Liabel; babywear, activewear, sleepwear such as the PJ Salvage brand, and leisurewear. To enhance their digital reach they acquited intimates retailer Bare Necessities diversifying their distribution channels.
For the 2020 full year, operating loss was $7.1 million, compared to operating profit of $103.7 million for 2019. Before one-time items, operating profit for the 2020 full year was $49.3 million, compared to $106.0 million for the comparable period last year.
Schiesser
