Delta Galil Sales Top $2B

Delta Galil 2024 net income jumped 11% to $94.64 million as sales rose 10% to a record $2.0457 billion. Q4 sales were up 18%, “driven by growth in all segments, channels and geographics.” In the three months the company earned $29.52 million on sales of $599.23 million, compared to a profit of  $37.78 million on sales of $508.60 million in the same period last year.

Delta Galil, which owns the Barenecessities.com DTC retailer, also boasted that “fourth quarter and full year online sales of the company’s brands increased 22% and 21%, respectively.”

“Delta’s strong fourth quarter financial results produced a record year of sales and robust profitability, reflecting our team’s resilience, creativity, and dedication in achieving excellent results,” declared CEO Isaac Dabah, adding, “we believe this positive momentum will support our business in 2025, as we look to increase sales, expand margins, and enhance our position as a leader in the global intimates and activewear market.”

Delta Galil explained that “gross margin in the fourth quarter of 2024 was 41.7% compared to 43.1% for the same period last year. The year-over-year reduction in the fourth quarter gross margin was due primarily to higher freight costs, lower tax rebates in our Egyptian operations and segment mix. Gross margin for the 2024 full year increased by 100-basis points to a record 41.9%, compared to 40.9% in the prior-year period. The year-over-year gross margin increase was due primarily to higher volume production in the company’s factories due to an increase in private label segment sales, and an increase in more profitable DTC sales, partially offset by higher freight costs.”

Looking ahead, for the full year 2025 the company is expecting sales to rise 4%-6% to $2.118 billion to $2.165 billion. Net income is expected to rise 4%-9% to $112 million to $118 million. 

Above, the Barenecessities.com website.