Schiesser
Delta Galil Industries, Ltd.* the global manufacturer and marketer of branded and private label intimate apparel, leisurewear, activewear and denim products for men, women and children, today reported financial results for the third quarter and nine months ended 30 September 2022.
Isaac Dabah, CEO of Delta Galil, stated:
“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.”
Third Quarter 2022 Highlights
- 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 December 6, 2022. The record and “ex-dividend” date will be November 29, 2022.
PJ Salvage
*Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually endeavored to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. 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 PJ 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.
