Delta Galil, a prominent name in the intimates and apparel industry, recently made headlines by announcing record sales for the first quarter of the year, showcasing an impressive growth trajectory across all business segments and channels.
For the quarter ending March 31, the Tel Aviv-based company reported a striking 11% year-over-year increase in sales, reaching $498.7 million. This surge reflects not just the popularity of their products but also the rising trend of online shopping, as evidenced by a robust 21% boost in online sales of Delta Galil’s owned brands during the same period.
In a commendable display of financial health, Delta Galil’s net income skyrocketed by 46%, climbing to $17.6 million compared to $12 million in the previous year. Furthermore, the diluted earnings per share saw an impressive rise of 56%, hitting $0.62 from $0.39 a year ago. These numbers are not just figures; they reflect the company’s commitment to listening to customer preferences and delivering quality apparel that resonates with the market.
Delta Galil’s wide-ranging portfolio includes an array of apparel—from seamless bras and shapewear to socks, underwear, loungewear, babywear, and activewear. Their brands, such as Schiesser, Eminence, Organic Basics, Athena, P.J. Salvage, and Delta, are well-known in the market. Additionally, they offer denim and apparel under the well-regarded 7 For All Mankind brand, as well as women’s and children’s clothing under Splendid. Their partnerships with licensed collections for major names like adidas, Wolford, Wilson, Columbia, Tommy Hilfiger, and Polo Ralph Lauren, underscore their authoritative presence in the fashion world.
CEO Isaac Dabah expressed enthusiasm regarding the record sales, emphasizing the momentum witnessed across every segment and retail channel. He said, “Our top-line performance showcases our efforts to fuel the growth of our brands and partners, focusing on exceptional design, quality, and sustainability. This growth, aligned with strict cost controls, has resulted in solid year-over-year gains in EBIT, EBITDA, and net income.”
However, Dabah didn’t shy away from addressing the broader economic challenges at play. Recently enacted changes in U.S. trade policies have created a layer of uncertainty that prompted the company to withdraw its previously issued guidance for 2025. It’s a reminder that the business landscape can shift unexpectedly, impacting even the most successful companies.
Despite this uncertainty, Delta Galil anticipates that the potential annual operating income impact from tariffs will remain manageable, estimating it won’t exceed $20 million. They are also targeting a reduction in annual operating expenses of between $5 to $7 million.
Dabah reassured stakeholders by stating, “While the macroeconomic environment has become more complex amid evolving U.S. trade policies, our growth initiatives are on track. We continue to witness strong demand from our key customers and are strategically positioned to capture market share thanks to our manufacturing facilities located in countries with low tariff exposure.”
In essence, Delta Galil’s journey through recent challenges, while maintaining a solid growth path, is a testament to their resilience and commitment to quality. Whether you’re a customer, investor, or just someone interested in the apparel industry, it’s clear that Delta Galil is navigating the complexities of the market with determination, innovation, and a keen eye on sustainable practices. Their story resonates as they adapt to changes while keeping their customer base at the heart of their strategy.
Image Source: Delta Galil @ Instagram
