Tefron Q1 Sales, Income Jump

Examples of Tefron intimates, loungewear and activewear on the company website.

First quarter sales and earnings jumped dramatically for Tefron, a prominent Israel-based producer of intimate apparel and activewear. The firm earned $4,306,000 on revenue of $75,580,000 in the three months ended March 31, compared to a profit of $1,863,000 on sales of $54,961,000 during the same period in 2023.

Tefron operates both a brands segment and a retail segment. In its own description, the brands division “engages in the design, development, production and marketing of seamless intimate apparel and activewear and leisurewear, which are manufactured in the company’s plants and through subcontractors and are sold to customers with leading brands.” The retail division “engages in the design, development, production and marketing” of products in the same categories, which it sells to “customers in the retail market and are characterized by purchasing large quantities of less complex products compared to the products of the brands segment.”

In the first quarter, Tefron reported operating income of $3,117,000 on reveneue of $21,090,000 from the brands division; and operating income of $4,234,000 on revenue of $54,490,000 from the retail division. To reveal net income for the company as a whole, it deducted combined financing and tax expenses of $3,045,000 to yield the quarterly profit of $4,306,000.

Discussing the impact of the war in Gaza, Tefron explained that “it has had no material effect on the company since all the sales and production processes are carried out overseas, with the exception of the development stage, which is mostly carried out in Israel, and which was also not affected by the military operation.” It added, however, that “a deterioration into a regional war could affect Israel’s relationship with Jordan and the company’s local production in Jordan, something that could have significant effects, particularly in regard to the brands segment.” —NM