For the full year ended 31 December 2025, the company posted record sales of $2.12bn, marking a 4% increase from $2.05bn in fiscal 2024.

This growth was accompanied by a 5% rise in gross profit, which reached $900.3m versus $856.3m last year. Gross margin also improved by 60 basis points to a record 42.5%, up from 41.9% in the prior year.

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However, profitability metrics showed some softness. Earnings before interest and taxes (EBIT) excluding non-core items was $174.2m in FY25, down from $184.1m in FY24.

Delta Galil, a global apparel company supplying the likes of Nike, Victoria’s Secret, Lululemon, Skims and Walmart, said net income for the full year 2025 totalled $93.7m, slightly down from $94.6m in the prior year. This resulted in diluted earnings per share of $3.21 for 2025, compared to $3.29 in the previous year.

Delta Galil CEO Isaac Dabah said: “I am proud of our performance throughout 2025, which reflects the strength and commitment of our team, the resilience of our balance sheet, our culture of continuous improvement, and the power of our global platform. Together, these fundamentals give us confidence that we are well positioned for another year of profitable growth.”

Delta Galil’s fourth quarter highlights

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The company achieved record sales of $611.1m in the final quarter of the fiscal, marking a 2% increase $599.2m in the same period last year.

Gross profit rose by 5% to $263.2m from $250.1m, with gross margin climbing to 43.1%, up by 140 basis points from the fourth quarter of 2024.

The company attributed this margin expansion primarily to a higher proportion of direct-to-consumer (DTC) sales, improved factory efficiencies, and favourable exchange rates, though these were partially offset by the impact of US tariffs.

Despite these gains in sales and margins, fourth-quarter EBIT excluding non-core items fell to $59.3m from $64.7m a year earlier, while net income excluding non-core items declined 13% to $35.5m from $41.0m in the prior-year quarter.

In the fourth quarter of 2025, net income was $28.0m, which translates to diluted EPS of $0.93, compared to $29.5m and $1.00, respectively, in the same period last year.

“Our fourth quarter capped an outstanding year of execution in what has been a challenging retail environment. We successfully navigated the impact of US tariffs, expanded programs with key global customers, and delivered record sales driven by organic growth across most of our channels, geographies, and product lines. At the same time, we continued to make strategic investments in our factories and distribution centres to improve efficiencies, which enhanced our operations, brands and capabilities,” Isaac Dabah added.

Outlook for 2026

Looking ahead to fiscal 2026, Delta Galil issued guidance projecting continued top-line and bottom-line growth.

The company expects sales to range between $2.29bn and $2.33bn. EBIT is forecasted to be between $204m and $212m, while EBITDA is projected in the range of $324m to $332m.

Net income is anticipated to range between $116m and $123m, with diluted EPS expected to be between $4.00 and $4.23.