Delta Galil Industries, the global manufacturer and marketer of branded and private label apparel products, has reported net sales increase by 9 per cent to $365.4 mn in Q1 2019 as compared to $334.5 mn in Q1 2018. Net income was $3.0 mn in the first quarter of 2019, compared to $7.4 mn in the same quarter last year, a 59 per cent decrease.
The sales increase reflected top-line growth in Delta Galil US, Delta Galil’s Global Upper Market, Delta Israel, and Delta European Brands, including a strong contribution from its newly acquired Eminence business, said Delta Galil. “We concluded the quarter with a 9 per cent increase in sales and a significant improvement in cash flow, however, our first quarter results were impacted by the devaluation of the Euro and NIS versus the US dollar, and a shift of holiday sales to the second quarter. Still, we remain pleased as we continue to benefit from a diversified model, including a range of business segments, product categories and an expanded global presence that enables us to drive momentum and balance. In the first quarter of 2019, we saw a strong performance from Delta Galil USA, Global Upper Market, and a contribution from Eminence,” said Isaac Dabah, CEO of Delta Galil.
“During the quarter, we continued to improve efficiencies at our factories and expect full operational status for 2019. Our Delta Galil Premium Brands business was impacted by the shift in holiday and the depreciation of the Euro, as well as a new store opening expenses; however it remains an exciting growth opportunity. As we look ahead, we remain committed to investing in new products and resources to deliver sustained profitable growth and long-term shareholder value. With a strong balance sheet in place, we have the necessary financial resources to continue to innovate and grow — both organically and through strategic acquisitions,” added Dabah. Full-year 2019 sales of the company are expected to range between $1,550 mn–$1,590 mn, representing an increase of 3-6 per cent from 2018 actual sales of $1,498 mn. Full-year 2019 diluted EPS is expected to range between $2.50- $2.65, representing an increase of 5—12 per cent from 2018 actual EPS of $2.37.