(Filed Under wholesale Lingerie News). In the first quarter, Delta Galil lost $30.509 million on sales of $332.683 million compared to a profit of $3.029 million on sales of $365.375 million in the quarter ended March 31, 2019.
The company said the 9% drop in sales was “primarily due to reduced volume in all business segments and markets following [the] COVID-19 eruption, partly offset by sales from The Bogart Group, acquired in July 2019,” as well as “rising web and e-commerce customer sales.”
Looking ahead, the firm stated that “as a result of the global impact of COVID-19, and due to the prolonged shutdown of stores in Delta Galil’s main markets, the company expects its Q2 sales and profit decline to be more significant than Q1; however, the company expects a much stronger and a profitable second half of the year with a gradual return to normal operations.” Despite that, it stated it “is not providing” any more detailed “financial guidance for fiscal 2020 at this time.”
Explained CEO Isaac Dabah, “these are truly unprecedented times, where our business and Q1 results have been significantly impacted by the COVID-19 pandemic. That said, we’ve seen a sustained increase in e-commerce sales in all of our operating segments, demonstrating the continued strength of our diversified business and omni-channel model. We had a very good improvement in our operating cash flow due to tight management of our working capital. And continuing the positive trend from last year, Delta Israel had significant improvement in profitability, despite COVID-19.” He continued, “we are well positioned to emerge from this challenging period and continue our growth in a post-COVID world.”
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