Latest news with #DeltaGalilIndustriesLtd
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@
