Delta Galil delivers excellent third quarter sales results
Delta Galil Industries Ltd., the global manufacturer and marketer of branded and private label apparel products for men, women and children, reported its financial results for the third quarter of 2011.
The company reported sales of $184.8 million for Q3 2011, up from $169.7 million in Q3 2010, an increase of approximately 9%. This solid performance was driven by sales growth in all of the company's geographic areas of operation: North America, Europe, UK and Israel.
For the first nine months of 2011, Delta Galil reported sales of $502.4 million, compared to $466.9 million in the same period last year, an increase of approximately 8%.
Net profit in the third quarter of 2011 totaled $7.7 million, compared to $6.5 million in the same quarter last year, an increase of approximately 19%. Earnings per share on a diluted basis rose to $0.32 for the third quarter of 2011, up 19% from $0.27 in the same period last year.
In the first nine months of 2011, the company's net profit amounted to $19.2 million, compared to $14.9 million in the same period last year, an increase of 28%. Earnings per share on a diluted basis rose 27%, to $0.79 for the first nine months of 2011, from $0.62 in the same period last year.
Delta Galil CEO Isaac Dabah stated: "We are pleased to deliver another excellent quarter for Delta Galil. This is the tenth consecutive quarter in which we have reported rising net profit, thanks to our continuing focus on innovation and enhanced customer service, leading to steady growth. We remain committed to an expansion strategy designed to make us a leader in intimate apparel and socks, as well as to drive continued strong growth in the future."
Commenting on the previous announcement that Delta Galil was in negotiations to acquire the jeanswear business and related assets of The Jones Group Inc., Mr. Dabah said: “The negotiations with the Jones Group and the banks are continuing. We currently expect that the transaction will be finalized by the end of this year.”
“Among the key developments that contributed to our solid 2011 year-to-date results, our seamless business has shown continued strength and we have enhanced our leadership position in the seamless business, primarily in shapewear and sportswear. In addition, we saw significant growth in our performance sport socks in Europe , as well as in our upper market business in lingerie and men's underwear,” Mr. Dabah noted.
Continued Focus on Innovation
In other recent developments announced during the quarter, Delta Galil continued its commitment to innovation by introducing its latest groundbreaking fabric technology, ReaLasting Softness. This new patent pending technology ensures that garments using man-made fabrics can retain their softness and smoothness with no pilling wash after wash, allowing for longer wear and use.
Delta Galil also launched another breakthrough in the man-made fabrics area called RealCool Softness Pro. This new technology is not only anti-pill after many washes, but is a true performance man-made fabric with moisture management properties. It wicks away perspiration from the skin to the fabric's surface for evaporation, leaving the body cool, dry and thus more comfortable.