(Filed Under Financial and General Interest News). Delta Galil sales in the first quarter jumped 9% but net income slumped 59%.

Meanwhile the company reaffirmed its full year prediction, stating 2019 sales “are expected to range between $1,550 million - $1,590 million, representing an increase of 3%-6% from 2018 actual sales of $1,498 million.”

Assuming its recent, rapid pace of growth continues, Delta Galil could soon achieve the milestone of moving ahead, in overall sales, of nearby intimates competitor, Wacoal in the next two to three years. Growth seems to have stagnated at the latter firm, which just reported annual sales of $1.8 billion, down slightly from the year before. Sales at Wacoal were about $1.79 billion in the year ended March 31, 2017, and about $1.85 billion the year before that.

Full-year 2019 net income at Delta Galil is expected to range between $64 million and $67 million, “representing an increase of 5%-12% from 2018 actual net income of $60 million.”

In the quarter ended March 31, 2019, Delta earned $3.03 million on sales of $365.4 million, compared to a profit of $7.4 million on sales of $334.5 million in the same period last year. “The sales increase largely reflected top-line growth in Delta Galil USA, Delta Galil’s Global Upper Market, Delta Israel, and Delta European Brands, which included a strong contribution from its newly acquired Eminence business,” according to the firm.

Explained CEO Isaac Dabah, “our first quarter results were impacted by the devaluation of the Euro and NIS versus the U.S. dollar, and a shift of holiday sales to the second quarter. Still, we remain pleased as we continue to benefit from a diversified model, including a range of business segments, product categories and an expanded global presence, that enables us to drive momentum and balance.”

“During the quarter, we continued to improve efficiencies at our factories and expect full operational status for 2019. Our Delta Galil Premium Brands business was impacted by the shift in holiday and the depreciation of the Euro, as well as a new store opening expenses; however it remains an exciting growth opportunity.”

“As we look ahead, we remain committed to investing in new products and resources to deliver sustained profitable growth and long-term shareholder value. With a strong balance sheet in place, we have the necessary financial resources to continue to innovate and grow -- both organically and through strategic acquisitions,” Dabah concluded. — NM

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Published 05-17-2019 by Nick Monjo