The company, which produces ladies' intimates, men’s underwear, loungewear, activewear, sleepwear, shapewear and socks, supplies brands including Nike, Victoria's Secret, Lululemon, Skims, Walmart and others.

Sales rose 9% to $511.6m, compared to $470.1m in the second quarter.

Gross profit expanded 26%, and EBIT rose to $54.6m from $31m a year earlier, helped by tariff refunds.

Net income increased to $34.4m from $16.7m a year earlier.

Isaac Dabah, CEO of Delta Galil, stated: “We delivered an outstanding second quarter that meaningfully strengthened the momentum established in the first quarter and demonstrated broad-based progress across our business. Excluding the benefits of an IEEPA tariff refund, we achieved record second-quarter sales and an all-time record gross margin of 45.2%, as well as double-digit growth in all other profitability indicators. We expect to use a portion of the proceeds from the tariff refund to invest strategically in our manufacturing, supply chain and overall structure to support our future growth and profitability.”

Second quarter and year-to-date results demonstrate that our growth initiatives are translating into stronger revenue, expanding profitability and increased cash generation. While the tariff refund provided an additional benefit to our reported results and cash flow, the strength of our underlying performance reflects the continued execution of our strategy and the investments we have made in product innovation, owned brands, manufacturing flexibility, global sourcing, and distribution capabilities. With positive momentum across the business and net debt lower than a year ago, we believe Delta Galil is increasingly well positioned to deliver sustained profitable growth through the balance of 2026 and beyond,” added Dabah.