• Q3 net income increased 31% to US$17.7m from $13.4m
  • Sales grew 4% to $296.6m
  • Strong contribution from VF premium brands acquisition
The company said it is also focusing on growing its ecommerce business

The company said it is also focusing on growing its ecommerce business

Israel-based lingerie, underwear and activewear manufacturer Delta Galil Industries has offered an optimistic outlook after reporting higher sales and earnings in its third-quarter, and says the opening of new Seamfree and Cut & Sew factories is on track.

Net income in the three months to the end of September increased 31% to US$17.7m, up from $13.4m in the year ago period, while sales grew 4% to $296.6m compared to $284.6m last year. 

A "strong contribution" came from the company's recent addition of DG Premium Brands – including brands 7 For All Mankind, Splendid and Ella Moss – which added $28.9m to sales and $2.0m to operating profit in the quarter. There was also strong growth in Europe.

Delta Galil completes VF contemporary brands buy

"Our third quarter results demonstrate the strength of our business model, which is built on a diverse portfolio 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.

During the quarter, the company said it had focused on consolidating Premium Brands into its business, taking important measures and implementing the necessary efficiencies to both streamline and strengthen the brands to best position them for growth.

"Importantly, through this new business segment, we are growing our product offering and entering new categories, which is enabling us to reach new customers as well as strengthen our relations with existing ones – all while expanding our global reach," explained Dabah.

Delta Galil added it is on track to open its new Seamfree and Cut & Sew factories in the fourth quarter, and expects its new Vietnamese factory to contribute to company growth in 2017.

"With a strong balance sheet to support our long-term growth and acquisition strategy, we are also focused on growing our ecommerce business, and we are working to attain double digit EBIT growth in 2017 and beyond," adds Dabah.

Last month, Delta Galil tapped Paula Schneider, former CEO of troubled US retailer American Apparel, to head up the new DG Premium Brands unit.

Delta Galil taps former American Apparel CEO Schneider