Delta Galil Reports Record First Quarter 2025 Results
CAESAREA, Israel--(BUSINESS WIRE)--Delta Galil Industries, Ltd. (DELG/Tel Aviv Stock Exchange), the global designer, manufacturer and marketer of branded and private label intimate, activewear, loungewear and denim apparel for ladies, men, and children, today reported financial results for the first quarter ended March 31, 2025.
First quarter sales increased 11% to a first quarter record of $498.7 million, driven by growth in all segments and channels
First quarter online sales of the Company's own brands increased 21%
Gross profit in the first quarter increased 6% to $202.6 million, compared to $190.5 million last year
First quarter EBIT before non-core items increased 11% and reached $32.7 million, compared to $29.4 million, for the first quarter last year
Net Debt to EBITDA, excluding IFRS 16, was 0.7x for the quarter ended March 31, 2025, compared to 0.7x last year
Strong balance sheet with $91.9 million in cash and record shareholders' equity of $817.7 million at March 31, 2025
Declares a $8.0 million dividend for the first quarter 2025, same as for the first quarter last year
Isaac Dabah, CEO of Delta Galil, stated, 'Delta delivered record first quarter sales, reflecting strong momentum across all segments and retail channels. Our top-line performance underscores our efforts to fuel the growth of our brands and partners through exceptional design and a relentless focus on innovation, quality and sustainability. This growth, combined with disciplined cost controls, yielded solid year-over-year gains in EBIT, EBITDA and net income.'
Mr. Dabah added, 'While the macroeconomic environment has grown more complex amid evolving U.S. trade policies, our growth initiatives remain on track. We continue to see strong demand from key customers and are well positioned to gain market share due to our strategically located manufacturing facilities in countries with low tariff exposure.'
'With a profitable model, and a strong balance sheet, we're well-positioned to invest in our multi-year growth plan. We believe our powerful platform, committed team, and global focus, will allow us to navigate any near-term economic challenges, while pursuing long-term growth opportunities to deliver lasting value for our shareholders,' concluded Mr. Dabah.
Sales
The Company reported first quarter 2025 sales of $498.7 million, an 11% increase from $450.8 million in the first quarter of 2024.
Gross Margin
Gross profit in the first quarter was $202.6 million compared to $190.5 million in the first quarter of 2024.
Gross margin in the first quarter of 2025 was 40.6% compared to 42.3% for the same period last year. The year-over-year reduction in the first quarter gross margin was due primarily to higher freight costs, 90 basis points impact of foreign currency exchange-rates and lower export subsidy in our Egyptian operations.
EBIT
EBIT in the first quarter of 2025 was $32.7 million, compared to $26.0 million, in the first quarter last year.
EBIT before non-core items in the first quarter of 2025 was $32.7 million, or 6.6% of sales, compared to $29.4 million, or 6.5% of sales, in the same period last year.
The year-over-year increase in first quarter EBIT was primarily due to higher sales and controlled operating expenses.
Non-Core Items
For the first quarter of 2025, the Company recorded no non-core expenses. For the first quarter of 2024, expenses associated with the Company's previously disclosed realignment plan for Bare Necessities were $3.4 million.
Net Income
Net income in the first quarter of 2025 increased 46% to $17.6 million, compared to $12.0 million in the same period last year.
Net income excluding non-core items, net of tax in the first quarter of 2025, increased 22% to $17.6 million, compared to $14.5 million in the first quarter of 2024.
Diluted Earnings Per Share
Diluted earnings per share in the first quarter of 2025 increased 56% to $0.62, compared to $0.39 in the first quarter last year.
Diluted earnings per share, excluding non-core items, net of tax, increased 26% to $0.62 in the first quarter of 2025 compared to $0.49 in the first quarter of 2024.
EBITDA, Cash Flow, Net Debt, Equity, and Dividend
EBITDA, excluding IFRS 16, in the first quarter of 2025 increased 7% to $40.5 million, compared to $37.7 million in the first quarter of 2024.
Cash flow generated from operating activities, excluding IFRS 16, was $4.0 million, compared to $23.5 million in the first quarter of 2024. The year-over-year reduction in operating cash flow was primarily attributable to changes in working capital to support expected sales growth, additional new brands and longer lead-time.
Net Debt to EBITDA, Excluding IFRS 16, as of March 31, 2025, was 0.7x and at a similar level compared to March 31, 2024.
Equity on March 31, 2025, was $817.7 million, up 7% from $764.6 million on March 31, 2024.
Delta Galil declared a dividend of $8.0 million, or $0.3065 per share, which will be distributed on June 10, 2025, with a record and 'ex-dividend' date of May 28, 2025.
2025 Financial Guidance
The Company's previous guidance provided in its 2024 annual report did not include any impacts from new tariff legislation on imports to the U.S. that recently became effective. In light of the uncertainty with respect to country specific reciprocal tariff rates, the Company has withdrawn its prior guidance.
The Company is working to offset the effects of tariffs by sharing the impacts with its long-term vendors and strategically optimizing the Company's sourcing and production to countries with lower exposure to tariffs. The Company estimates that based on current tariff rates, the potential impact on 2025 annual operating income will not exceed $20 million. In addition, the Company is taking proactive measures to reduce annual operating expenses by $5-7 million.
Constant Currency - Excluding the Impact of Foreign Currency
This release refers to 'reported' amounts in accordance with IFRS accounting principles ('GAAP'), which include translation and transactional impacts from foreign currency exchange rates. The release also refers to 'constant dollar' amounts, which exclude the impact of translating foreign currencies into U.S. dollars, and are considered a non-GAAP financial measure. These constant currency performance measures should be viewed in addition to, and not in lieu of, or superior to, Delta Galil's operating performance measures calculated in accordance with GAAP.
About Delta Galil Industries
Delta Galil Industries is a global designer, manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually endeavored to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; underwear for men including under its owned brands Schiesser, Eminence, Organic Basics, and Athena; babywear, activewear, sleepwear, and loungewear including under its owned P.J. Salvage and Delta brands. Delta Galil also designs, develops markets and sells branded denim and apparel under the brand 7 For All Mankind ®, and ladies' and kids' apparel under the brand Splendid ®. In addition, it sells its products under brand names licensed to the company, including adidas, Wolford, Wilson, Columbia, Tommy Hilfiger, Polo Ralph Lauren and others. For more information, visit www.deltagalil.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, tax rates in the various countries the Company operates in, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Balance Sheets
As of March 31, 2025
March 31
December 31
2025
2024
2024
(Unaudited)
(Audited)
Thousands of Dollars
Liabilities and Equity
Current liabilities:
Short-term bank loans
12,014
38,102
2,335
Current maturities of long term bank loans
21,567
24,965
20,939
Current maturities of bonds
29,471
29,662
29,476
Financial derivative
1,222
1,143
1,314
Current maturities of leases liabilities
79,323
51,908
53,663
Trade payables
235,619
203,982
237,371
Income taxes payable
18,661
29,729
23,805
Provision for realignment plan
7,303
3,563
8,142
Others payables
173,623
142,261
194,900
Total current liabilities
578,803
525,315
571,945
Non-current liabilities:
Bank loans
118,310
133,471
124,163
Post-employment benefits obligation, net
5,418
5,434
5,810
Lease Liability
230,972
206,311
225,802
Other non-current liabilities
48,103
53,441
49,105
Bonds
63,291
94,996
64,712
Deferred taxes liabilities
34,079
33,521
33,394
Financial derivative
2,957
2,746
1,765
Total non-current liabilities
503,130
529,920
504,751
Total liabilities
1,081,933
1,055,235
1,076,696
Equity:
Equity attributable to shareholders in the parent company:
Share capital
23,714
23,714
23,714
Share premium
123,800
126,219
124,025
Other capital reserves
23,651
23,168
15,590
Retained earning
632,409
573,560
625,912
Treasury shares
(9,464)
(12,026)
(9,832)
794,110
734,635
779,409
Non-controlling interests
23,567
29,967
24,153
Total equity
817,677
764,602
803,562
Total liabilities and equity
1,899,610
1,819,837
1,880,258
Expand
DELTA GALIL INDUSTRIES LTD.
Concise Consolidated Cash Flow Reports
For the 3-month period ending March 31, 2025
Three months ended March 31
2025
2024
(Unaudited)
Thousands of Dollars
Cash flows from operating activities:
Net income for the period
17,603
12,049
Adjustments required to present cash flows from operating activities
19,748
43,337
Interest paid in cash
(8,961)
(8,522)
Interest received in cash
439
1,234
Income taxes paid in cash, net
(10,393)
(12,524)
Net cash generated from operating activities
18,436
35,574
Cash flows from investment activities:
Acquisition of property, plant including under construction
(20,635)
(12,295)
Acquisition of intangible assets
(5,320)
(17,364)
Proceeds from sale of property, plant and equipment
1,724
220
Others
(407)
416
Net cash used in Investing activities
(24,638)
(29,023)
Cash flows from financing activities:
Dividend paid to non-controlling interests in subsidiary
(1,679)
(1,800)
Payment of long-term payable in connection with acquisition of property, plant and equipment under construction
(1,203)
(1,406)
Principal elements of lease payments
(14,386)
(12,087)
Dividend paid
(10,023)
(9,021)
Receipt of long-term bank loans
967
543
Repayment of long-term bank loans
(7,434)
(6,154)
Short-term credit from banking corporations, net
9,463
37,282
Others
(232)
1,734
Net cash generated from (used in) financing activities
(24,527)
9,091
Net increase (decrease) in cash and cash equivalents
(30,729)
15,642
Effects of exchange rate changes on cash and cash equivalents
408
(2,736)
Balance of cash and cash equivalents at the beginning of the period, net
120,509
174,463
Balance of cash and cash equivalents at the end of the Period, net
90,188
187,369
Expand
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
32 minutes ago
- Business Wire
Informa TechTarget Announces Partnership with Outreach to Help Companies Build and Accelerate Sales Pipeline Through More Intelligent Prospecting
NEWTON, Mass.--(BUSINESS WIRE)--TechTarget, Inc. ("Informa TechTarget") (Nasdaq: TTGT), global growth accelerator and leading provider of intent data and insights to the B2B technology sector, today announced a strategic partnership and integration with Outreach, the only workflow-first sales execution platform. The integration empowers mutual customers to connect the dots between active buyer research and sales engagement so they can book more meetings, drive better conversations, create more pipeline, and accelerate deal velocity. "Roughly 9 out of 10 initial conversations with BDRs never progress through the sales cycle. Our new integration addresses this challenge head-on by fueling the timely and relevant engagement required to maximize conversion and pipeline impact,' said Jillian Coffin, Senior Vice President of Customer Enablement and Strategy, Informa TechTarget. 'By automatically adding Informa TechTarget's Active Prospects directly into topically aligned Outreach sequences, reps can dramatically improve their ability to connect with warm contacts when they're actively researching relevant topics and solutions.' The new integration empowers sales teams to: Streamline workflows between Priority Engine, Informa TechTarget's proprietary purchase intent data platform, and Outreach to maximize sales efficiency Instantly add Active Prospects directly into relevant Outreach sequences with one click Automatically export Active Prospects to topically aligned Outreach sequences on a weekly basis Key benefits of this strategic partnership include: Increased efficiency and improved focus: Informa TechTarget's precise, person-level intent data helps reps more quickly identify and prioritize prospects with demonstrated solution interest so they can focus their efforts squarely on accounts and prospects showing active buying behavior. Timely engagement: Informa TechTarget continuously identifies new prospects from in-market accounts who are actively researching relevant topics across our network and delivers these permissioned buyers directly to Outreach. These automated workflows improve success by reducing the time to get from intent signal to outreach, enabling reps to engage prospects while they are actively researching and get into deals earlier. Improved conversion: Informa TechTarget delivers deep, real-time insights into the specific needs, pain points, and current topics of interest for each individual buyer who is actively researching on their topically relevant editorial communities. With this contextual intelligence at their fingertips, sellers can personalize every touchpoint based on a prospect's demonstrated interests and drive meaningful conversations that increase conversion to opportunity. The Informa TechTarget-Outreach integration is available now to current Priority Engine Sales subscribers at no additional cost. Customers must have both a Priority Engine Sales subscription and an Outreach license to utilize the integration. To learn more, click here. About Informa TechTarget TechTarget, Inc. (Nasdaq: TTGT), which also refers to itself as Informa TechTarget, informs, influences and connects the world's technology buyers and sellers, helping accelerate growth from R&D to ROI. With a vast reach of over 220 highly targeted technology-specific websites and over 50 million permissioned first-party audience members, Informa TechTarget has a unique understanding of and insight into the technology market. Underpinned by those audiences and their data, we offer expert-led, data-driven, and digitally enabled services that have the potential to deliver significant impact and measurable outcomes to our clients: Trusted information that shapes the industry and informs investment Intelligence and advice that guides and influences strategy Advertising that grows reputation and establishes thought leadership Custom content that engages and prompts action Intent and demand generation that more precisely targets and converts Informa TechTarget is headquartered in Boston, MA and has offices in 19 global locations. For more information, visit and follow us on LinkedIn. © 2025 TechTarget, Inc d/b/a Informa TechTarget. All rights reserved. All trademarks are the property of their respective owners.
Yahoo
32 minutes ago
- Yahoo
Informa TechTarget Announces Partnership with Outreach to Help Companies Build and Accelerate Sales Pipeline Through More Intelligent Prospecting
This powerful combination helps mutual customers drive better business outcomes by efficiently identifying and effectively engaging prospects in an active buying journey NEWTON, Mass., June 09, 2025--(BUSINESS WIRE)--TechTarget, Inc. ("Informa TechTarget") (Nasdaq: TTGT), global growth accelerator and leading provider of intent data and insights to the B2B technology sector, today announced a strategic partnership and integration with Outreach, the only workflow-first sales execution platform. The integration empowers mutual customers to connect the dots between active buyer research and sales engagement so they can book more meetings, drive better conversations, create more pipeline, and accelerate deal velocity. "Roughly 9 out of 10 initial conversations with BDRs never progress through the sales cycle. Our new integration addresses this challenge head-on by fueling the timely and relevant engagement required to maximize conversion and pipeline impact," said Jillian Coffin, Senior Vice President of Customer Enablement and Strategy, Informa TechTarget. "By automatically adding Informa TechTarget's Active Prospects directly into topically aligned Outreach sequences, reps can dramatically improve their ability to connect with warm contacts when they're actively researching relevant topics and solutions." The new integration empowers sales teams to: Streamline workflows between Priority Engine, Informa TechTarget's proprietary purchase intent data platform, and Outreach to maximize sales efficiency Instantly add Active Prospects directly into relevant Outreach sequences with one click Automatically export Active Prospects to topically aligned Outreach sequences on a weekly basis Key benefits of this strategic partnership include: Increased efficiency and improved focus: Informa TechTarget's precise, person-level intent data helps reps more quickly identify and prioritize prospects with demonstrated solution interest so they can focus their efforts squarely on accounts and prospects showing active buying behavior. Timely engagement: Informa TechTarget continuously identifies new prospects from in-market accounts who are actively researching relevant topics across our network and delivers these permissioned buyers directly to Outreach. These automated workflows improve success by reducing the time to get from intent signal to outreach, enabling reps to engage prospects while they are actively researching and get into deals earlier. Improved conversion: Informa TechTarget delivers deep, real-time insights into the specific needs, pain points, and current topics of interest for each individual buyer who is actively researching on their topically relevant editorial communities. With this contextual intelligence at their fingertips, sellers can personalize every touchpoint based on a prospect's demonstrated interests and drive meaningful conversations that increase conversion to opportunity. The Informa TechTarget-Outreach integration is available now to current Priority Engine Sales subscribers at no additional cost. Customers must have both a Priority Engine Sales subscription and an Outreach license to utilize the integration. To learn more, click here. About Informa TechTarget TechTarget, Inc. (Nasdaq: TTGT), which also refers to itself as Informa TechTarget, informs, influences and connects the world's technology buyers and sellers, helping accelerate growth from R&D to ROI. With a vast reach of over 220 highly targeted technology-specific websites and over 50 million permissioned first-party audience members, Informa TechTarget has a unique understanding of and insight into the technology market. Underpinned by those audiences and their data, we offer expert-led, data-driven, and digitally enabled services that have the potential to deliver significant impact and measurable outcomes to our clients: Trusted information that shapes the industry and informs investment Intelligence and advice that guides and influences strategy Advertising that grows reputation and establishes thought leadership Custom content that engages and prompts action Intent and demand generation that more precisely targets and converts Informa TechTarget is headquartered in Boston, MA and has offices in 19 global locations. For more information, visit and follow us on LinkedIn. © 2025 TechTarget, Inc d/b/a Informa TechTarget. All rights reserved. All trademarks are the property of their respective owners. View source version on Contacts Garrett MannVice President of Corporate CommunicationsInforma Sign in to access your portfolio
Yahoo
38 minutes ago
- Yahoo
Generational Associates Named Emerging Leaders by The M&A Advisor
DALLAS, June 09, 2025--(BUSINESS WIRE)--Generational Group, a leading middle-market investment banking firm for privately held businesses, is proud to announce that four of its M&A professionals—Troy Blakely, Alex Mironov, Ivan Portugal, and Joshua Young—have been named 2025 Emerging Leaders by The M&A Advisor. This prestigious recognition honors rising stars who are shaping the future of mergers and acquisitions, restructuring, and corporate finance. The M&A Advisor, a globally renowned organization known for recognizing and showcasing leading M&A, financing, and turnaround professionals, established this awards program to honor excellence and foster mentorship and professional development among emerging leaders in the corporate finance and dealmaking industries. Troy Blakely serves as Vice President of Generational Capital Markets. He supports Managing Directors throughout the M&A process, including marketing middle-market businesses, facilitating due diligence, and helping execute successful transactions. Alex Mironov serves as a Managing Director at Generational Group, based in the Atlanta office and focused on the Southeast U.S. region. He works directly with private middle-market business owners to develop and implement exit strategies. Alex oversees the preparation of marketing materials and manages the marketing and due diligence processes to support successful deal closings. In his leadership role, he also guides a team of M&A advisors on client positioning, financial preparation, and transaction execution. Ivan Portugal is a Senior Manager of M&A Marketing and Buyer Services at Generational Group. Since 2022, he has leveraged his marketing expertise and Salesforce skills to support deal success. Ivan excels at using digital channels to boost online presence and generate leads, making him a valuable asset in the dynamic M&A space and a trusted leader in marketing strategy and execution. Joshua Young serves as the Senior Manager of M&A Buyer Coverage at Generational Group, where he has been a key team member for eight years. He focuses on building strategic relationships with active buyers in the Middle Market, including private equity groups, family offices, corporations, and high-net-worth individuals. With over a decade of financial services experience, Joshua is an industry specialist across sectors such as construction, energy, and technology, and has supported the successful closing of more than 500 transactions. Award winners were selected by an independent judging panel for their innovation, leadership, and community contribution. The recognition culminates at the 2025 Leadership in Dealmaking Summit, held September 15 -16, 2025, in New York City — a gathering of industry leaders, past honorees, and new voices driving meaningful change. Ryan Binkley, President and CEO of Generational stated, "It's an amazing accomplishment to have four of our own be recognized by The M&A Advisor. They personify our company's Core Values and consistently demonstrate leadership that impacts the organization and our clients. I look forward to their continued growth as individuals and professionals." "Attracting talented people to the firm and guiding them up through the organization is one of the most rewarding things that our senior dealmakers experience. These gentlemen are technically proficient with exceptional salesmanship. They each have bright futures in M&A and will certainly become top advisors with Generational in the years to come," said Brenen Hofstadter, Chief M&A Officer at Generational Group. Founded in 1998, The M&A Advisor is the global leader in connecting, recognizing, and informing professionals in M&A, restructuring, and corporate finance. Now in its 27th year, they provide world-class content, events, and honors programs that empower dealmakers at every stage of their journey. For a complete list of the 2025 Emerging Leaders Award Winners click here. About Generational Group Generational Group, headquartered in Dallas, is a leading, award winning, full-service M&A advisory firm. With over 300 professionals across 16 offices in North America, the company helps business owners unlock the full value of their businesses through a comprehensive suite of advisory services. These services include strategic growth consulting, exit planning education, business valuation, value enhancement strategies, M&A advisory, digital solutions, and wealth management. Generational Group was honored as the 2024 USA Investment Banking Firm of the Year by the Global M&A Network and named Investment Banking Firm of the Year by The M&A Advisor in both 2024 and 2022. The firm also received recognition as Valuation Firm of the Year and Consulting Firm of the Year in 2022 and 2023, further cementing its reputation as a leader in M&A advisory services. View source version on Contacts Media Contact:Jenna Gaston469-694-8764jgaston@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
