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A look from Tommy Hilfiger. Tommy Hilfiger at Delta Galil. Tommy Hilfiger at D2. Nearly Nude at D2.
A look from Tommy Hilfiger.

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Tommy Hilfiger at Delta Galil.

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Tommy Hilfiger at D2.

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Nearly Nude at D2.

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current news

Delta Galil Sales Rise 9% In Third Quarter


(Filed Under Financial and General Interest News). Delta Galil third quarter sales increased 9% while net income fell 33% mainly due to costs related to the recent acquisition of Eminence Group and other restructuring.

Sales jumped to $370.8 million for the quarter, up from $340.3 million in same period last year. “Sales for the first nine months [were] $1,044.2 million, up 5% from $996.4 million in the same nine-month period of 2017.” The company continued, “net income excluding Eminence acquisition-related costs and restructuring costs increased 15% to $16.6 million, from $14.5 million in the third quarter of 2017. Net income including acquisition-related and restructuring costs of $7.0 million (net of tax) was $9.6 million for the third quarter of 2018, compared to $14.4 million last year.”

CEO Isaac Dabah explained, “we saw strong performance from Delta USA, where successful launches for Costco and new kids businesses drove a 9% increase in sales and a 49% increase in EBIT. We continued to see significant improvement in Delta Israel, with a 19% increase in sales and $1.3 million improvement in EBIT, as well as strong comparable sales and online growth.”

Dabah continued, “During the quarter, we focused on consolidating Eminence Group, which made a strong contribution to sales in its first quarter as part of Delta Galil, while expanding our European presence.”

“Also during the quarter, we signed a global licensing agreement to exclusively develop, produce and distribute Ted Baker men’s underwear, loungewear, and thermal wear worldwide, with the first collection launching Spring 2019. This represents an important step in our ongoing strategy to grow our global portfolio of premium brands.”

“Looking ahead, we expect continued long-term growth in Delta Galil Premium Brands to reach above 10% EBIT. We see significant opportunities, including potential corporate initiatives to sell to key online retailers, and the ability to introduce core Delta products through Eminence distribution channels. Further, the investments we made in our manufacturing facilities will start having positive impacts on our bottom line towards 2019. We have a strong balance sheet, and we remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value.”

Looking ahead, the company stated, “full-year 2018 sales are expected to range between $1,475 million-$1,495 million, representing an increase of 8%-9% from 2017 actual sales of $1,368.1 million.” Delta Galil concluded, “full-year 2018 net income is expected to range between $57 million-$60 million, representing an increase of 12%-18% from 2017 actual net income of $50.7 million.” — NM


more Financial and General Interest News >>

Published 11-26-2018 by Nick Monjo

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