During the quarter ended 31 March 2026, the company’s consolidated sales rose 15% year-on-year to $573m, compared to $498.7 million during the corresponding period last year.
The group’s gross profit increased to $238.8m in q1 FY26, marking an 18% rise from $202.6m in the first quarter of 2025.
Gross margin reached 41.7%, up from 40.6% in the same period last year, with improvements largely linked to operational efficiency in its manufacturing facilities and favourable exchange rates.
Delta Galil delivered record earnings before interest and taxes (EBIT) for the quarter, excluding non-core items, posting $36.6m compared to $32.7m the previous year.
When including non-core items, EBIT stood at $35.1m versus $32.7m in 2025.
The company cited higher sales and further operational efficiency as primary drivers of EBIT growth, partially offset by increased expenses in selling, general and administrative areas, higher logistics costs, and investment in business expansion.
Net income excluding non-core items and net of tax remained at $17.6m, unchanged from the prior year.
Its diluted earnings per share, excluding non-core items, were $0.63, slightly higher than the $0.62 reported in 2025.
Delta Galil chief executive officer Isaac Dabah said: “2026 is off to a strong start, reflecting the strength of Delta Galil’s global platform, the value of our brands, and our team’s ability to execute at a high level in a dynamic environment.
“We grew our sales across all segments, delivered record first quarter sales, gross profit, EBIT, EBITDA and operating cash flow. These results were driven by higher US sales to our established and growing customer base, expansion of our owned brands due to continued product innovation, and the benefits of our strategic investments in global sourcing, production, and distribution capabilities.”
Looking ahead for fiscal 2026, Delta Galil continues to expect full year sales between $2.29bn and $2.33bn.
The company expects EBIT in the range of $204m to $212m, and net income of $116m to $123m.
Diluted EPS is projected between $4.00 and $4.23.
“I am encouraged by the positive momentum underway across the business, particularly as our investments in innovation, manufacturing flexibility, and customer partnerships continue to translate into measurable results. Our focus remains on executing with discipline, supporting the evolving needs of our customers and consumers, and leveraging the breadth of our global platform to capture opportunities for profitable growth in 2026 and beyond,” Dabah added.
