• Q2 net income drops to US$9.3m
  • Sales climb 8% to $255.5m

Delta Galil Industries has revealed mixed results in its second-quarter as earnings fell but sales grew, with the lingerie, sleepwear and sock manufacturer reaffirming its full-year guidance.

Net income dropped to US$9.3m in the three month period, compared with $9.7m in the year-ago period.

Sales, however, were up 8% to $255.5m, growing 3% after the effect of currency translation.

"Our results for the 2015 second quarter demonstrate the strength of the company’s business model, which is built on a diverse blend of branded and private label products, an expanding global presence, and a range of market segments that, together, provide both growth momentum and balance," said CEO Isaac Dabah.

"Thus, while the volatile currency exchange environment posed headwinds to profit growth, we still delivered our second-highest quarter for sales and increased our cash flow substantially. This also has been an important year for strategic growth initiatives."

Financial guidance for 2015 was reaffirmed with full-year sales expected to be a record $1.06m to $1.08m, rising 7%-9% in constant currency. Full-year 2015 diluted EPS is expected to be $1.88- $2.00.

Meanwhile, the company has promoted CFO Yossi Hajaj to deputy CEO, EVP and head of global operations, with responsibility for Delta's growing global production and other key operations. Jacob Heen has been named CFO, effective in October. Heen currently serves as corporate CFO at Tnuva, Israel's largest food products group.