Delta Galil Q2 Income +39.7%

Fashions on the Florence by Mills website, a brand recently launched in collaboration with Delta Galil

Delta Galil Q2 net income jumped 39.7% as sales rose 6.3% and the company achieved a record second quarter gross margin of 41.9%.

Net income for the latest quarter was $21.021 million on sales of $471.426 million, compared to net income of $15.050 million on sales of $443.583 million in the three months ended June 30, 2023.

CEO Isaac Dabah declared, “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.”

Mr. Dabah added, “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.”  

For the full year, Delta Galil is predicting sales of $1.991  billion to $2.031 billion, compared to sales of $1.8577 billion in 2023. Net income for 2024 is expected to range between $106.9 million and $114.7 million, compared to $91.6 million in 2023. —NM