Latest news with #DeltaGalil
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
Global fashion falters in Q1 FY25 amid tariff pressures
Pic: Helen89 / Insights Global fashion ended Q * FY * * on a weak note, with only * companies reporting strong results, * moderate and * weak in the below list. FY on a weak note, with only companies reporting strong results, moderate and weak in the below list. While Delta Galil, Azzas and Burlington posted solid growth, others like Ross and M&S saw mixed outcomes. Dillard's, American Eagle, Carter's, Kohl's and Macy's reported sales and/or profit declines, reflecting cautious consumer spending and tariff uncertainty. To read the full story, become a PRIME member today. All Corporate Members and TexPro Subscribers are eligible to access F2F PRIME CONTENT using the same login credentials. Latest News Insights Latest News Insights Exclusive Industry Articles & Features Exclusive Industry Articles & Features Detailed Article Analytics & Insights Digital Edition of Fibre2Fashion Magazine Digital Edition of Fibre2Fashion Magazine Get notified in your mailbox
Yahoo
31-05-2025
- Business
- Yahoo
Delta Galil withdraws FY25 guidance despite record Q1 sales
Delta Galil sales reached $498.67m in Q1 ended 31 March 2025, up from $450.78m in the corresponding quarter of the previous year. However, due to the ongoing unpredictability of tariffs the company decided to retract its previously issued financial guidance. It said the forecast presented in its Annual Report for 2024 did not consider the newly implemented US import tariffs. Working in conjunction with vendors and customers to distribute the cost implications Using its extensive international network of production facilities and partnerships Shifting manufacturing operations away from China Intensifying efforts to expand market share through an increased presence in Egypt, leveraging the country's lower tariff rates. The company also forecasts a potential increase in retail prices during the second half of 2025 as tariff-related expenses are passed along throughout the supply chain. Moreover, it is expediting its cost-reduction initiatives with an aim to realise savings between $5m and $7m. Delta Galil has also indicated that approximately 30% of its current revenue is subject to the effects of US tariffs. It anticipates the impact of these tariffs will not surpass $20m in 2025. The first quarter saw a 21% rise in online sales for Delta Galil's proprietary brands. Delta Galil CEO Isaac Dabah said: '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.' In the first quarter, Delta Galil's gross profit was $202.59m, a 6% increase from $190.49m in the first quarter of 2024. However, gross margin declined to 40.6% from 42.3% in the same period last year, with higher freight costs, foreign currency exchange rates impacting by 90 basis points, and reduced export subsidies in Egyptian operations contributing to this decrease. Delta Galil's earnings before and taxes (EBIT) for the first quarter stood at $32.68m, marking a 26% increase from $25.99m in the previous year's first quarter. The EBIT before non-core items also rose by 11% to $32.68m from $29.35m year-over-year. This increase was mainly due to higher sales volumes and controlled operating expenses. Net income for Delta Galil also surged by 46% to $17.60m compared to $12.05m in the same period last year. Excluding non-core items after tax adjustments, net income for the first quarter increased by 22% to $17.60m from $14.49m in the first quarter of 2024. Diluted earnings per share (EPS) experienced a significant boost of 56%, reaching $0.62 compared to $0.39 in the prior year's first quarter. EPS excluding non-core items after tax went up by 26% to $0.62 in comparison to $0.49 in the first quarter of 2024. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Delta Galil, excluding IFRS 16 impacts, rose by 7% to $40.5m in comparison to $37.7m in the first quarter of the previous year. In February, Delta Galil said it expected a sales increase between 4% to 6% and net income to grow by 4%-9%, potentially hitting between $112m and $118m. Diluted EPS was forecasted to land between $3.92 and $4.15. "Delta Galil withdraws FY25 guidance despite record Q1 sales" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Fibre2Fashion
24-05-2025
- Business
- Fibre2Fashion
Israels' Delta Galil delivers 5th straight quarter growth in Q1 FY25
Israeli textile firm Delta Galil Industries Ltd has reported record first quarter (Q1) results for fiscal 2025 (FY25) ended March 31, with sales rising 11 per cent year-over-year to $498.7 million, marking its fifth consecutive quarter of growth. The company saw strength across all segments and channels, with online sales of its own brands increasing by 21 per cent. Gross profit expanded 6 per cent to $202.6 million, although gross margin narrowed to 40.6 per cent from 42.3 per cent due to higher freight costs, adverse foreign exchange rates, and a reduction in Egyptian export subsidies. Delta Galil reported record Q1 FY25 results with sales up 11 per cent to $498.7 million, marking its fifth consecutive quarter of growth. Net income rose 46 per cent to $17.6 million, while online brand sales grew 21 per cent. Despite margin pressure, EBIT climbed 26 per cent. The company withdrew prior guidance due to new US tariffs but expects limited impact and is implementing cost-saving measures. The EBIT rose 26 per cent to $32.7 million, and EBIT before non-core items increased 11 per cent. Net income surged 46 per cent to $17.6 million, while EPS jumped 56 per cent to $0.62. Excluding non-core items, net income and EPS grew 22 per cent and 26 per cent, respectively, Delta Galil said in a press release. '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 YoY gains in EBIT, EBITDA and net income,' said Isaac Dabah, chief executive officer (CEO) of Delta Galil . 'While the macroeconomic environment has grown more complex amid evolving US 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,' added Dabah. 'With a profitable model, and a strong balance sheet, we are 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 Dabah. Delta Galil forecasts that the impact of current US tariff rates on its 2025 annual operating income will not exceed $20 million. To help offset this, the company is implementing cost-saving measures aimed at reducing annual operating expenses by $5–7 million. The company's previous guidance, outlined in its 2024 annual report, did not account for the recent US tariff legislation. Due to ongoing uncertainty around country-specific reciprocal tariff rates, that guidance has now been withdrawn, added the release. Fibre2Fashion News Desk (SG)
Fashion United
23-05-2025
- Business
- Fashion United
Delta Galil reports record sales and profit increase in first quarter 2025
Israeli textile group Delta Galil Industries Ltd had a successful start to the 2025 financial year. In the first quarter, the company, whose portfolio also includes the German lingerie brand Schiesser, achieved record sales and significantly higher profits, Delta Galil announced on Thursday. Despite the positive development, the group faces new challenges due to changes in US trade policy. In the three months to March 31, sales amounted to 498.7 million dollars. Delta Galil exceeded the previous year's level by 11 percent, a new record for the first quarter. According to the company, growth in all segments and sales channels, plus a strong increase of 21 percent in online sales of its own brands, contributed to this success. Delta Galil increases profit despite lower margin However, the gross margin in the first quarter was 40.6 percent, below the previous year's figure of 42.3 percent. The group explained that the decline was mainly due to increased freight costs, unfavourable exchange rates and lower export subsidies in Egypt. Nevertheless, thanks to higher sales and strict cost discipline, Delta Galil was able to increase its operating profit (EBIT) by 26 percent to 32.7 million dollars. Adjusted for special effects, the EBIT was also 32.7 million dollars, an increase of 11 percent compared to the previous year. Net profit increased by a remarkable 46 percent to 17.6 million dollars in the first quarter. Despite all the successes, the group withdrew its forecast for the year as a whole, which had been announced in the annual report, due to new US tariffs on imports and the associated uncertainties. Delta Galil is working to cushion the impact through optimised production and procurement strategies, as well as cost savings of between 5 million and 7 million dollars. The group estimates the maximum burden on operating profit from the current tariffs at up to 20 million dollars. 'We are well positioned to grow and gain market share even in a challenging economic environment,' emphasised chief executive officer (CEO) Isaac Dabah. The company's geographically diversified production sites offer strategic advantages in the face of trade barriers. Dabah also reaffirmed the long-term goal of creating added value for customers and shareholders through innovation, sustainability and strong brands. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Fashion Network
23-05-2025
- Business
- Fashion Network
Delta Galil posts record Q1 sales, withdraws 2025 guidance amid tariff uncertainty
Intimates and apparel manufacturer and marketer Delta Galil reported on Thursday record first-quarter sales, driven by growth in all segments and channels. For the quarter ended March 31, the Tel Aviv-based company posted an 11% year-over-year increase in sales to $498.7 million. Online sales of Delta Galil's owned brands jumped 21% in the period. Net income for the quarter surged 46% to $17.6 million, compared to $12 million in the same period last year. Diluted earnings per share rose 56% to $0.62, up from $0.39 a year ago. Delta Galil develops and markets a wide range of apparel, including seamless bras, shapewear, socks, underwear, loungewear, babywear and activewear under brands such as Schiesser, Eminence, Organic Basics, Athena, P.J. Salvage and Delta. It also sells denim and apparel under 7 For All Mankind and women's and children's apparel under Splendid, in addition to licensed collections for adidas, Wolford, Wilson, Columbia, Tommy Hilfiger, Polo Ralph Lauren, and others. '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,' said Isaac Dabah, CEO of Delta Galil. Dabah also acknowledged challenges in the broader economic landscape, citing recent changes in U.S. trade policies as a source of uncertainty. As a result, the company has withdrawn its previously issued 2025 guidance. The company estimates that the maximum impact on annual operating income from tariffs will not exceed $20 million and is targeting a $5 to $7 million reduction in annual operating expenses. '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.'
