(Filed Under Financial and General Interest News). Delta Galil’s Q2 sales rose 10% while net income fell 22%. For the three months ended June 30, 2019 the firm made $5.07 million on sales of $373.89 million compared to $6.46 million on sales of $338.91 million in the same period last year.

Delta Galil explained that the quarter included “a one-time non-recurring charge of $2.8 million related to Bogart acquisition costs,” referring to the large, Hong Kong based producer of intimates and swimwear it announced it was buying in June. “This compared to net income of $6.5 million for the same quarter of 2018, including a one-time non-recurring charge of $3.95 million related to Eminence acquisition costs,” which referred to the French underwear producer it bought last year. “Net income excluding one-time items was $7.9 million in the second quarter of 2019, compared to $9.1 million last year.”

CEO Isaac Dabah stated, “We’re pleased with our second quarter results, as sales grew 10%, driven primarily by our Global Upper Market, Delta European Brands, and Delta Israel. During the quarter, we made several strategic investments in our business that I’m confident will drive continued momentum and growth.”

Delta Galil stated that, for the time being, it was leaving “unchanged its 2019 financial guidance,” but added that several factors, including China tariffs, might have an impact. “The Company will update its guidance with respect to these factors in the 2019 third quarter.”

For now, “Full-year 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.” In addition, “Full-year 2019 net income is expected to range between $64 million-$67 million, representing an increase of 5%-12% from 2018 actual net income of $60 million.”

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Published 08-19-2019 by -