(Filed Under Financial and General Interest News). Second quarter income at Delta Galil declined 28% while sales dropped only slightly.
The intimate apparel and sportswear firm earned $6.458 million on sales of $338.907 million in the three months ended June 30, compared to a profit of $8.910 million on sales of $340.461 million in the same period in 2017.
Isaac Dabah, Delta’s CEO explained “During the quarter, we saw significant improvements in Delta Israel, including a 14% increase in sales, as well as a strong performance by Schiesser, including a 10% increase in sales.” Schiesser is the Germany-based underwear producer it acquired in 2012.
He added, “we were very pleased with the early completion of the Eminence Group acquisition, as it adds a men’s premium French brand, while expanding our business in France and Italy, where we currently lack significant market share. The acquisition was financed using Euro bank loans at an attractive interest rate. We will consolidate Eminence Group results beginning in the third quarter.”
“While we experienced challenges in our second quarter, they were partially offset by improvements in several business segments and regions, demonstrating the strength of our diversified business model. We have a strong balance sheet in place, and through our blend of branded and private label products, an expanding global presence, and a range of market segments, we remain positioned for long-term profitable growth.”
“Looking ahead, we expect the investments we made in our manufacturing facilities to start having positive impacts on our bottom line towards the second half of 2019. We are also excited about designer/influencer collections in Delta Galil Premium Brands, possible initiatives with online retailers, and the ability to introduce core Delta products through the Eminence distribution channels. With a strong balance sheet and cash position, we have the necessary financial resources to continue to invest, innovate and grow – both organically and through acquisitions.”
Looking ahead, the company stated “full-year 2018 sales are expected to range between $1,400 million-$1,440 million, representing an increase of 2%-5% from 2017 actual sales of $1,368.1 million. Full-year 2018 EBIT is expected to range between $91 million-$96 million, representing an increase of 4%-10% from 2017 actual EBIT of $87.4 million.”
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