Delta Galil Sales: $2.1B

An image of Passionata lingerie on the Delta Galil website. It announced the acquisition of the brand from Chantelle in late 2023.

Delta Galil achieved “record fourth quarter and full year” 2025 sales, as net income slipped slightly during both periods. For the full year, sales rose 4% to $2.119 billion, up from $2.046 billion last year, as net income slipped 1% to $93.7 million, compared to $94.6 million in 2024. For the fourth quarter, sales rose 2% to $611.1 million from $599.2 million, while net income fell 5% to $28.0 million from $29.5 million in the fourth quarter of 2024. The company added that “own-web sales (excluding Bare Necessities) in the fourth quarter increased 27%, representing the 12th consecutive quarter of double-digit growth.”

Delta Galil also reported, that “gross margin in the fourth quarter of 2025 increased by 140-basis points to 43.1%, compared to 41.7% in the fourth quarter of 2024. The year-over-year increase in the fourth quarter gross margin was due primarily to a higher portion of DTC sales, continued improved efficiency of our factories and positive exchange rates, partially offset by the U.S. tariff impact. Gross margin for the 2025 full year was a record 42.5%, up 60-basis points compared to 41.9% in the prior year period.”

In an investor hand out released on February 18 the company reported that “Tariff exposure” for 2025 “was mitigated to one-time effect of -$25 million.”

CEO Isaac Dabah remarked that “our fourth quarter capped an outstanding year of execution in what has been a challenging retail environment. We successfully navigated the impact of U.S. tariffs, expanded programs with key global customers, and delivered record sales driven by organic growth across most of our channels, geographies, and product lines. At the same time, we continued to make strategic investments in our factories and distribution centers to improve efficiencies, which enhanced our operations, brands and capabilities.” He added that the company is “well positioned for another year of profitable growth.” Based on a variety of expected future conditions and certain exclusions, Delta Galil projected that for the full year 2026, sales would be in the range of $2.294 billion to $2.328 billion.

In the investor handout, Delta Galil pointed to several factors in its expectation for growth in 2026. These include the “launching across RTW, intimates and sleepwear” of the Millie Bobby Brown brand in Walmart; “accelerating growth in newly acquired loungewear brand” Daily Drills (an LA brand that launched in 2020); plans of “doubling” its business under the licensed Polo Ralph Lauren brand “with expanded product range and distribution;” “scaling direct-to-consumer” sales under the Schiesser label with a “double digit EBIT target;” “increasing sales and margins across European markets” for both its Eminence and Passionata brands; and “improving profitability through optimized sourcing strategy” for its U.S. brands.