Israel-based lingerie, sleepwear and sock manufacturer Delta Galil has reaffirmed its full-year guidance as it revealed first-quarter results in line with expectations thanks to investments made in 2015 to improve the business.

Net income for the three months to the end of March amounted to US$7.9m from $8.9m a year earlier. Excluding the impact of a mark to market valuation on hedging transactions, which resulted in a loss of $1.5m in this quarter, earnings increased 13% to $9m.

Sales grew to $256.7m, an increase of 2% from $252.8m for the same quarter last year, primarily due to a significant improvement in Europe and in Israel, the company said.

"Our 2016 first quarter results were in line with expectations, reflecting a moderate top-line growth and a double-digit increase in operating profit before the effect of hedging," said CEO Isaac Dabah. "During the quarter, we began to benefit from investments made in 2015 to improve our business. We remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value."

As a result, the company reaffirmed its guidance for 2016, expecting sales to range between $1.09bn and $1.11bn, increasing 1%-3% from 2015 actual sales. Full-year 2016 diluted EPS is expected to range between $1.93 and $2.02, representing an increase of 2%-7% from 2015 actual EPS of $1.88.

In 2015, the company significantly increased its capital expenditures to support and drive global growth, adding a factory in Vietnam and a dye house in Egypt, and consolidated its headquarters and invested in new offices and showrooms in New York and Israel.