Delta Galil Q1 income soars 300%

Delta Galil Industries, a leading global manufacturer and marketer of branded and private label apparel, announced stellar first-quarter results for 2024, showcasing impressive growth and profitability. The company's strong performance highlights the resilience of its brands, the success of its strategic initiatives, and the robust demand for its diverse product offerings.

Key Financial Highlights

• Net Income Soars: Delta Galil's net income skyrocketed by an impressive 300% to $12.0 million, fueled by higher sales, improved margins, and successful cost management.
• Sales Growth: Total sales increased 2% to $450.8 million, driven by growth across most segments, particularly a remarkable 18% increase in online sales of the company's owned brands.
• Record Gross Margin: Gross margin expanded to a record 42.3% for the first quarter, reflecting a better customer and channel mix, improved factory profitability, and lower freight costs.
• Enhanced Profitability: First-quarter EBIT (earnings before interest and taxes) jumped 80% to $26.0 million, demonstrating the company's effective operational strategies and financial discipline.
• Strong Cash Flow: Operating cash flow, excluding IFRS 16, surged 114% to a record $23.5 million, further bolstering the company's financial position.

Delta Galil CEO Isaac Dabah attributed the company's exceptional performance to the strength of its brands, the value it delivers to its private label partners, and the successful execution of its strategic initiatives. These initiatives include driving sales, improving operating efficiencies, realigning manufacturing capabilities, and expanding into new categories and markets.

The company's recent acquisition of Passionata, a popular intimate apparel brand, adds a complementary dimension to its portfolio and is expected to contribute to future growth. Additionally, Delta Galil continues to explore opportunities for both owned and licensed brands, aiming to drive further expansion and profitability in 2024 and beyond.

Based on the robust start to the year, Delta Galil has raised its financial guidance for 2024, now expecting results to be in the mid to upper range of its original forecast. This optimistic outlook reflects the company's confidence in its strategic direction and its ability to capitalize on emerging market trends.

Delta Galil's outstanding first-quarter results and positive guidance have instilled confidence in investors, reinforcing the company's position as a leading player in the global apparel industry. With a strong balance sheet, robust cash flow, and a commitment to innovation and growth, Delta Galil is well-positioned to continue delivering value to its shareholders and customers in the years ahead.