(Filed Under Financial and General Interest News). Sales at Delta Galil rose 15% in the third quarter while net income fell 18%. For the first nine months sales are up 24% while income is down 13%.
For the three months ending September 30, the company earned $14.4 million on sales of $340.3 million compared to a profit of $17.7 million on sales of $296.6 million in the same period a year ago.
As it released the quarterly results, Delta Galil reaffirmed that for the full year 2017 “sales are expected to range between $1,330 million-$1,370 million, representing an increase of 13%-16% from 2016 actual sales of $1,179 million.”
CEO Isaac Dabah declared, “We are very pleased with our third quarter results, which reflect our balanced and diversified mix of businesses, products and markets. We delivered a strong quarter in our global upper market, Schiesser and recently acquired, Delta Galil Premium Brands, segments.”
In the summer of 2016 the company signed a $120 million deal to purchase apparel brands, including 7 for All Mankind, Splendid and Ella Moss, from VF Corporation’s Contemporary Brands Coalition.
Dabah admitted that during the latest quarter, “we did see softer sales in the U.S. resulting from the hurricane’s impact and port closures, as well as big launches of club programs which were not anniversaried from last year. However, we remained focused on centralizing and consolidating several manufacturing capabilities and store locations to promote greater efficiency, teamwork and more agile decision-making. And we expect to begin benefiting from these efforts, as well as expansion into Asian and Latin American markets, and initiatives to enhance the performance of Delta Galil Premium Brands beginning in 2018 and beyond.”
“Looking ahead, we will continue to grow organically, with a focus on our international and e-commerce businesses, while we will also continue to pursue the right strategic acquisition opportunities. We currently 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.”
In discussing the latest quarter, the company noted “The sales increase reflected a full period of results from Delta Galil Premium Brands (DGPB), as well as strength in the Global Upper Market, Schiesser and Delta Israel, while sales of Delta USA were impacted by hurricanes. Excluding DGPB, sales increased by 2% compared to the third quarter of 2016. For the first nine months of 2017, sales rose 24% to $996.4 million, compared to $802.8 million in the first nine months of 2016. Excluding DGPB, sales for the nine-month period increased by 3% compared to the first nine months of 2016.” — NM
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