(Filed Under Financial and General Interest News). Despite declines at Bare Necessities, parent company Delta Galil third quarter sales rose 2.2% to $512.002 million from $501.066 million in the three months ended September 30, 2021, while net income jumped 10.0% to $36.106 million from $32.487 million.
The company, which has a sizable branded and private label intimate apparel segment, also offers leisurewear, activewear and denim products for men, women and children.
CEO Isaac Dabah stated the results demonstrated “the continued strength of our diversified business model,” explaining the “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.”
Delta Galil revealed “e-commerce sales on the company’s own websites were $49.0 million in the third quarter, representing a 7% decrease (or 3% decrease in constant currency), compared to $52.4 million in the third quarter of 2021. E-commerce sales on the company’s own websites in the first nine months of 2022 were $157.4 million, representing a 16% decrease from $186.4 million in the same period last year. The decline followed a shift in consumer behavior back to physical retail stores after COVID-19 related lockdowns. Excluding Bare Necessities and Organic Basics, which were acquired in October 2020 and July 2022 respectively, own websites sales in the third quarter and first nine months of 2022 increased by 68% and 88%, respectively, compared to the same periods in 2019.”
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