Israel-based lingerie, underwear and activewear manufacturer Delta Galil Industries has reaffirmed its full-year guidance and will continue to pursue strategic acquisition opportunities, despite a double-digit drop in profit for the third quarter.
In the three months ended 30 September, net income attributable to shareholders slipped to US$14.4m, an 18% drop from $17.7m in the year-ago period. Operating profit was down 2% to $24.2m from $24.6m last year.
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Net sales meanwhile, were up 15% to $340.3m in the third quarter, compared to $296.6m last year. This reflected a full period of results from Delta Galil Premium Brands (DGPB) – the former VF Corp Contemporary Brands businesses, including 7 For All Mankind, Splendid and Ella Moss, as well as strength in the global upper market, Schiesser and Delta Israel, while sales of Delta USA were impacted by hurricanes. Excluding DGPB, sales increased by 2%.
“We are very pleased with our third quarter results, which reflect our balanced and diversified mix of businesses, products and markets,” said CEO Isaac Dabah. “We delivered a strong quarter in our global upper market, Schiesser and recently acquired, Delta Galil Premium Brands, segments.”
Dabah added the company remains focused on centralising and consolidating several manufacturing capabilities and store locations to promote greater efficiency, teamwork and more agile decision-making, and expects to begin benefiting from these efforts, as well as expansion into Asian and Latin American markets, and initiatives to enhance the performance of Delta Galil Premium Brands in 2018.”
For the full year, Delta has reaffirmed its guidance and expects sales in the range of $1.33bn to $1.37bn, representing an increase of 13%-16% from 2016 actual sales of $1.18bn. Diluted EPS is expected in the range of $1.95-$2.02, representing an increase of 5%-9%.
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By GlobalData“Looking ahead, we will continue to grow organically, with a focus on our international and e-commerce businesses, while we will also continue to pursue the right strategic acquisition opportunities,” Dabah said. “We currently have a strong balance sheet, and we remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value.”
