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

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search