USA: Delta Galil To Buy Intimate Apparel Company
Delta Galil Industries Ltd (Nasdaq: DELT), the global provider of private label intimate apparel, men's underwear, socks, baby wear, and leisurewear, today reported that Delta Galil's third quarter profitability will be affected by the weakness of the Euro and the appreciation of the NIS against the dollar.The company anticipates third quarter EPS to be in the range of $0.25-$0.30 as compared to analysts projections of $0.35-$0.40. In the event that the Euro and NIS exchange rates against the dollar remain at the current level, Delta Galil expects similar EPS erosion in the fourth quarter as compared to analyst's projections.Dov Lautman, Delta's chairman, noted that Delta hedged UK sterling's net proceeds against the dollar through year-end. "We have done our best to counter the effects of the currency situation and are continuing with our aggressive growth strategies."Following Delta Galil's strategy of increasing sales in North America and in the ladies' intimate apparel category, the company also announced that it signed a letter of intent for the purchase of all the shares of Inner Secrets Inc, a privately held US company, which is engaged in the development, production and marketing of ladies' intimate apparel.Inner Secrets is a manufacturer and marketer of private label bras, and other ladies' intimate apparel. The company has a host of customers, mainly catering to the mass market. Inner Secrets' customers include Target, Wal-Mart, K-mart, Victoria's Secret, and others. The company outsources to the Far East, especially Hong Kong, China, Indonesia, and Bangladesh. In addition, Inner Secrets owns a factory in the Dominican Republic and a distribution centre in New Jersey. Annual sales of Inner Secrets amounted to $90m in 1999.The purchase will contribute to several strategical goals of Delta Galil, which are:
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