(Filed Under Financial and General Interest News). Delta Galil’s third quarter sales rose 20%, to $446.1 million, up from $370.8 million in the third quarter of 2018. Meanwhile net income jumped 46% to $14.0 million, compared to $9.6 million in the three months ended September 30, 2018.

The company noted that excluding last summer’s acquisition of The Bogart Group, a prominent Hong Kong-based producer of intimates and swimwear, “sales in original currency increased by 6% as compared to the third quarter of 2018.”

CEO Isaac Dabah explained of the period ended September 30, 2019, “We benefited from a strong performance of our socks and seamless categories and our Global Upper Market and Delta Israel segments. We successfully concluded the acquisition of The Bogart Group.” He also noted, “e-commerce sales on Delta’s own website grew by double digits.”

“The third quarter represented the first time we consolidated results for The Bogart Group. We intend to leverage its strong market position going forward, particularly as we see opportunities for it to strengthen DGUSA’s product assortment.”

“Additionally, we plan to focus on growing the Eminence ladies and kids products, while leveraging the European brands infrastructure for selling Delta products.”

“Looking ahead, we will focus on driving organic growth, and seek new opportunities to apply our competitive and financial strengths to deliver shareholder value,” Dabah concluded.

The company reported “sales for the first nine months of 2019 increased 14% to $1,185.4 million, from $1,044.2 million for the same period of 2018. Excluding Bogart and Eminence sales in the first six months, sales in original currency increased by 5% as compared to the first nine months of 2018.”

“Net income for the first nine months of 2019 totaled $22.1 million, compared to $23.5 million for the same period last year, a 6% decrease. Net income, excluding one-time items for the first nine months of 2019, was $25.4 million, compared to $33.2 million for the comparable period of 2018, a 24% decrease.”

Delta Galil provided updated full year 2019 guidance, noting that it excluded the impact of “one-time items,” certain accounting changes relating to leases, China tariffs and the “costs related to recall of damaged goods shipped to a primary customer, which in total are estimated to be up to $4 million.” It thus estimated that “full-year 2019 sales are expected to range between $1,650 million-$1,690 million, representing an increase of 10%-13% from 2018 actual sales of $1,498 million.”

“Full-year 2019 net income is expected to range between $60 million-$62 million, representing an increase of 0%-3% from 2018 actual net income of $60 million.” — NM

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Published 11-18-2019 by Nick Monjo