Schiesser organic cotton long pyjamas
Delta Galil Industries, Ltd., the global manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for ladies, men, and children, today reported financial results for the second quarter ended June 30, 2024.
Isaac Dabah, CEO of Delta Galil, stated:
This was another strong quarter for Delta Galil, highlighted by record second-quarter DTC sales, growth in our Private Label sector, and significant expansion in profitability. Our strategic initiatives, aimed at enhancing operating efficiencies and realigning our manufacturing capabilities, have led to a record second-quarter gross margin of 41.9%, marking the fourth consecutive quarterly record of gross margin.
Within our branded business, we are particularly excited about the launch and expansion of key brands such as Florence by Mills and Organic Basics. These launches, amongst others, will position us for consistent, long-term growth. The continued strength of Delta Israel Brands, marked by a 23.2% year-over-year increase in second quarter retail same-store sales and the successful launch of Bath and Body Works and Victoria’s Secret in Israel, underscores our growing momentum. Furthermore, our positive operating leverage, reflected in a 100-basis point year-over-year increase in EBIT before non-core margin to 8.0%, demonstrates our ability to balance short-term profitability with long-term strategic investments.”
Second Quarter 2024 Highlights
- 6% sales growth to $471.4 million across all channels
- Record second quarter gross margin of 41.9% up 150 basis points
- Second quarter EBIT before non-core items increased by 22% to $37.8 million, or 8.0% of sales, compared to $30.9 million, or 7.0% of sales, for the same period last year
- Second quarter net-income before non-core items increased by 27% to $21.0 million, or 4.5% of sales compared to $16.6 million, or 3.7% of sales, for the same period last year
- Second-quarter diluted earnings per share before non-core items increased 25% to $0.74
- Operating cash flow, for the three months ended June 30, 2024, excluding IFRS 16, of $28.1 million
- Strong balance sheet with $166.3 million in cash and record shareholders’ equity of $771.8 million at June 30, 2024
- Net debt, excluding IFRS 16, declined 19% to $153.3 million, compared to $189.5 million at June 30, 2023
- Net Debt to EBITDA, Excluding IFRS 16, of 0.8x
- Dividend declared of $8.0 million, or $0.31 per share, which will be distributed on September 4, 2024, with a record and “ex-dividend” date of August 27, 2024
Mr. Dabah concluded,:
I am excited with the direction Delta is headed, as we benefit from a diversified portfolio and strategies focused on driving sustainable profitable growth. Our continuous commitment to product innovation continues to fuel growth for both our Private Label customers and our Brands, creating a powerful flywheel of market and consumer insights that we believe will continue to support profitable growth in both pillars.”
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Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. 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, Organic Basics, 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.
