ISRAEL: Delta Galil Q4 surges on strong European sales
- Q4 profit jumped 66% to $13.9m
- Sales rose 40% to $246.6m
- CEO aims to reach $1bn in sales during 2013
Strong sales in Europe and the acquisition of German lingerie group Schiesser have helped Israel-based underwear and sock maker Delta Galil Industries to book a 66% jump in fourth-quarter profit.
The company today (20 February) said net income reached US$13.9m for the three months ended 31 December, compared to $8.3m the year before.
Sales reached $246.6m, up 40% on the $176.4m recorded last time. Gross margin improved to 25.5% from 20.1%.
Growth was driven by Delta's acquisition of Schiesser as well as strong sales in Europe, mainly in Germany, and positive momentum in the US.
"In 2012 we delivered exceptional top-line and bottom-line performance and made great strides in executing Delta Galil's long-term strategies to transform the company into a leading, diversified global competitor in branded and private label intimate apparel," said CEO Isaac Dabah.
"We increased our branded business and our European footprint through the Schiesser acquisition, further penetrated the US mass market channel, and expanded our socks category and US kids business, through our recent acquisition of Little Miss Matched."
Over the full-year, net income climbed to $57m, from $33.9m the year before. Sales increased 20% to $817.8m from $678.8m last time.
Looking forward, Delta Galil expects full-year profit to range from $38m to $40m - a 15% rise on 2012 - while sales are seen at between $910m and $920m.
"Our outlook for 2013 calls for Delta Galil to approach $1bn in sales, accompanied by further growth in profitability. We plan to get there through continued organic growth in areas such as in Delta USA, Socks business and Delta Israel retail operations," Dabah added.
VF Corporation-owned Nautica Apparel has signed a licensing agreement with Israel-based apparel maker Delta Galil for men's dress, casual and athletic socks in the US and Canada....
Most of the company’s aspirations are on a global scale. Within the domestic market, Delta Galil is focusing on categories with higher profit margins, such as childrenswear or sportswear....
Israel-based apparel business has raised its full-year guidance despite seeing its second-quarter profit more than halve because of higher costs....
The main trend in the hosiery category is the growing popularity of discounted socks and tights, sold in value-for-money chains or other outlets. Socks, representing the largest category, are sold in ...
Italian businessman Silvio Scaglia, the founder of telecoms operator Fastweb, has acquired struggling upmarket lingerie maker La Perla following an auction at a bankruptcy court in Bologna. ...
During the review period the childrenswear category witnessed an increase in the presence of international and Israeli players, both new and established operators, offering a large variety of products...
Israel-based apparel business Delta Galil has reported a 69% increase in first-quarter net profit, boosted by higher sales in all regions....
The category saw an attempt to create a new concept in Israel in terms of online sales, where marketing is through video clips on the internet. The first pioneer was Bar Refaeli’s collection, with the...
- Why should brands care about China cotton?
- Low labour cost countries linked to highest risks
- China cotton: implications and opportunities
- COMMENT: Skills or new technology?
- Who has signed the Bangladesh safety accord?
- South Africa to grow grass for recyclable textiles
- Activewear driving US apparel spend
- JC Penney share price falls on Q4 loss
- Delta Galil open to M&A as profit grows
- Sri Lanka and Bangladesh FTA talks underway
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Global market review of swimwear - forecasts to 2019
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead