P.J.Salvage
Delta Galil Industries, Ltd. , global manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for ladies, men, and children, yesterday reported financial results for the fourth quarter and year ended December 31, 2023.
- Fourth quarter sales decreased 7% (6% in constant currency) to $508.6 million, driven by the continued slowdown in global consumer spending
- Full year sales decreased 9% (8% in constant currency) to $1,857.7 million
- Fourth quarter online sales of the Company’s own brands increased 16%
- Full year online sales of the Company’s own brands increased 17%
- Gross margin improved 340 basis points to a fourth quarter all-time record of 43.1%
- Full year gross margin improved 230 basis points to an annual record of 40.9%
- Fourth quarter EBIT before non-core items was $56.2 million, or 11.0% of sales compared to $56.9 million, or 10.5% of sales, for the same period last year
- Full year EBIT before non-core items was $153.0 million, or 8.2% of sales
- Full year operating cash flow excluding IFRS 16 improved $201.2 million to an annual record $181.9 million
- Net debt, excluding IFRS 16, at its lowest level since December 2021, declined 43% to $123.4 million, compared to $217.4 million at December 31, 2022
- Strong Balance sheet with $174.5 million in cash and record shareholders’ equity of $768.4 million at December 31, 2023
- Declares a $9 million dividend for fourth quarter 2023, compared to $8 million for the fourth quarter last year.
Isaac Dabah, CEO of Delta Galil, stated:
I am proud of our 2023 results, as our global teams successfully navigated a challenging retail environment. Sales in our DTC channel grew across all reporting segments, demonstrating the strength of our brands. Throughout the year, we also pursued strategies aimed at expanding gross margin, reducing our inventory levels, and generating strong operating cash flow. Our performance in 2023 resulted in record annual gross margin, a 26% year-over-year reduction in inventory, record annual operating cash flow, and a significant reduction in net debt.
Throughout 2023, we also made strategic investments to drive long-term growth opportunities. During the year we developed new innovative products for our global customers, added Florence by Mills to our rich brand portfolio, and acquired the Passionata brand. In addition, we focused on enhancing profitability by improving efficiencies and realigning our manufacturing capabilities. The actions we took during 2023 have added significant value to our business as we invested in growth, strengthened our financial position and created a more agile organisation that is better positioned to compete in an increasingly complex retail and economic environment.
We expect the macro environment to remain challenging in 2024, but we believe we are well positioned to achieve year-over-year growth in revenue and profitability driven by the strength of our brands, our advanced manufacturing and design capabilities, and our strong balance sheet and financial position. I am encouraged by the powerful platform we have created and the long-term strategies we are pursuing to create sustainable value for our shareholders.”
Schiesser
Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; underwear for men including under its owned brands Schiesser, Eminence, and Athena; babywear, activewear, sleepwear, and loungewear including under its owned P.J. Salvage and Delta brands. Delta Galil also designs, develops markets and sells branded denim and apparel under the brand 7 For All Mankind®, and ladies’ and kids’ apparel under the brand Splendid®. In addition, it sells its products under brand names licensed to the company, including adidas, Wolford, Wilson, Columbia, Tommy Hilfiger and others.
