Home / Knowledge / News / Apparel/Garments / Delta Galil registers record sales in Q2
Delta Galil registers record sales in Q2
11
Aug '11
Sales of Delta Galil in the second quarter of 2011 amounted to $160.2 million, compared to $156.7 million in the second quarter of 2010; an increase of 2%. The profit attributed to Delta Galil shareholders in the second quarter of 2011 was approximately $5.6 million, compared to approximately $4.5 million in the same quarter last year; an increase of 23%.

In the first half of 2011, Delta's sales reached $317.6 million compared to $297.2 million in the first half of 2010; an increase of 7%. Profit attributed to Delta Galil shareholders in the first half of 2011 were $11.4 million, compared to $8.4 million in the first half of last year; an increase of 36%.

Isaac Dabah states "This is the ninth consecutive quarter of improved profits and the seventh consecutive quarter of sales growth, despite the softness in the US Mass Market. We estimate that the mass market segment will attain operational profitability in the second half of 2011, following an increase in selling prices to customers." Dabah adds, "the activity of the Delta Galil Kids stores, launched this year, is successful and is an important growth engine to our Delta Galil Israel segment."

Gross profit of Delta Galil in the second quarter of 2011 amounted to $32.7 million (20.4% of the total sales) compared to $29.5 million (18.8% of the total sales) in the second quarter of last year; an increase of 11%. The increase in gross profit is a result of an increase in sales and improvement in profitability of the Global Upper Market and Delta Israel segments despite erosion of the gross margin in the U.S. Mass Market segment.

Sales of the Global Upper Market segment in the second quarter of 2011 increased by 4% to $71.2 million and the operating profit increased by 60% to $7.2 million. The improvement in the operating profit is a result of higher sales and improved product mix that included highly innovative products. Also contributing to the improved profit margins was an increase in the production volume and profitability of the Company's plants.

Sales of Delta Galil Israel in the second quarter of 2011 increased by 28% to $21.5 million and operating profit increased by 42% to $3.6 million. The improvement in operating profit was a function of the increase in sales volume.

US Mass Market sales in the second quarter of 2011 decreased by 10% to $69.6 million. The operating loss amounted to $1.7 million compared to a profit of $1.9 million in the same quarter of last year.

The transition from operating profit in the second quarter of last year to an operating loss in the second quarter of 2011 was caused by an erosion of gross margin due to the increase in product costs; primarily an increase in cotton price as well as the time lag to adjust selling prices to customers. The segment is expected to become profitable in the second half of the year, following the increase in selling prices to customers.

Delta Galil's operating profit in the second quarter of 2011 amounted to $7.9 million, compared to $ 7.6 million in the same quarter last year; an increase of 3%.

Subsequent to the balance sheet date, Delta Galil announced a dividend distribution amounting to $2 million, (8.54 cent per share) to be distributed on September 6, 2011. This is the sixth consecutive quarter in which the Company distributes dividends.

Delta Galil Industries


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search