ISRAEL: Delta Galil books Q3 gains as Jones talks continue
- Q3 profit jumps 19% to $7.7m
- Sales climbed 9% to $184.8m
- Jones jean talks to close by year-end
Apparel and lingerie maker Delta Galil Industries Ltd yesterday (10 November) said talks to buy Jones Group's jeanswear division are taking longer than the initial one-month timeframe, but the deal is likely to be finalised by the end of this year.
Speaking as the company booked a 19% jump in third quarter profit, Delta Galil CEO Isaac Dabah said "The negotiations with the Jones Group and the banks are continuing. We currently expect that the transaction will be finalised by the end of this year."
The Israeli company, which specialises in intimate apparel, underwear, bras and socks, children's wear, leisurewear and nightwear for customers including Marks & Spencer, Target, Wal-Mart, JC Penney, Calvin Klein, Nike and Hugo Boss, said third quarter profit rose to $7.7m, up from $6.5m the year before.
Higher gross profit and a stronger margin contributed to this rise. Gross profit in the quarter was $37.2m or 20.1% of overall sales, up 11% on last year's $33.4m or 19.7% of sales.
Revenues were also up, climbing 9% to $184.8m from $169.7m, with growth in North America, Europe, the UK and Israel.
Dabah put the gains down to "our continuing focus on innovation and enhanced customer service" - including its seamless shapewear and sportswear business. "In addition, we saw significant growth in our performance sport socks in Europe, as well as in our upper market business in lingerie and men's underwear," he added.
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