(Filed Under Financial and General Interest News). Still on target to surpass $1 billion in sales, for the first time in a fiscal year, Delta Galil reported rising income of $13.8 million on higher sales of $267.2 million for the quarter ended September 30. This compares to income of $12.7 million on sales of $257.2 million for the same period last year.
Sales and income were also up for the first nine months of the year. The company reported income of $32.9 million on sales of $754.5 million, compared to income of $28.2 million on sales of $718.8 million in 2013.
CEO Isaac Dabah declared, “Our strong results for 2014 to-date have put the company firmly on track for a year of record sales and earnings, including our first full year of $1 billion-plus in sales. To continue our strong growth momentum we are pursuing a number of strategic initiatives, with a goal of significantly increasing our sales over the next five years through both organic means and acquisitions.”
In announcing the results the company explained, “The growth in operating income reflected Delta Galil’s increasing sales and a wider gross profit margin, due in part to the expansion of its branded products business. Gross profit increased to 30.9% of sales for both the third quarter and nine months of 2014, up from 30.4% in the third quarter and 29.5% in the nine months of 2013. This was partly offset by higher selling and marketing expenses as the company invested in the growth of its business.”
Dabah added, ”The Company is adding world-class management talent in key areas such as the U.S. intimates business, global manufacturing, and acquisitions and corporate development. We are growing our activewear business by penetrating new distribution channels and partnering with customers to create innovative products. And we will centralize and consolidate some office locations to promote greater efficiency, teamwork and more agile decision-making.” The company recently hired both Maurice Reznik, the former CEO at Maidenform, as well as a mergers and acquisitions expert, Inbar Schwartz (see other stories in BODY) in key executive positions. In the first days of November, Reznik was named CEO of women’s intimate apparel for USA and Great Britain and president of the company’s Delta Galil USA segment. Earlier this fall Schwartz became vice president director for business development.
“As we invest for long-term, consistent growth, our strategies will be supported by a solid balance sheet with $147.7 million in cash and $335.6 million in equity. Throughout the year, we have allocated capital to expanding our manufacturing capacity, enhancing our retail store operations in Israel and Europe, and other investments in our future.”
“Our strategy going forward remains focused on organic growth and acquisitions; further development of our branded, retail and activewear businesses; and continual innovation as a source of competitive advantage,” Dabah said.
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