Home / Knowledge / News / Apparel/Garments / Delta Galil net income up 2% in Q2FY18

Delta Galil net income up 2% in Q2FY18

18
Aug '18
Courtesy: Delta Galil
Courtesy: Delta Galil
The net income of Delta Galil excluding the acquisition-related costs has increased 2 per cent to $9.1 million in the second quarter of fiscal 2018, from $8.9 million in the second quarter of 2017. Net income was $6.5 million for the second quarter of 2018, including the acquisition-related costs, down 27 per cent from $8.9 million last year.

The company reported sales of $338.9 million for the second quarter of 2018, relatively flat from $340.5 million in the second quarter of 2017. Sales for the first six months of 2018 were $673.4 million, up 3 per cent from $656.1 million in the same six-month period of 2017.

"While we experienced challenges in our second quarter, they were partially offset by improvements in several business segments and regions, demonstrating the strength of our diversified business model. We have a strong balance sheet in place, and through our blend of branded and private label products, an expanding global presence, and a range of market segments, we remain positioned for long-term profitable growth," Isaac Dabah, CEO of Delta Galil said.

Operating profit before one-time items was $15.2 million for the second quarter of 2018, compared to $17.7 million in the second quarter of 2017, representing a 14 per cent decrease. Operating profit was $11.3 million for the second quarter of 2018, including $4 million acquisition-related costs, compared to $17.7 million for the same period last year, representing a 36 per cent decrease.

"We were very pleased with the early completion of the Eminence Group acquisition, as it adds a men’s premium French brand, while expanding our business in France and Italy, where we currently lack significant market share. The acquisition was financed using Euro bank loans at an attractive interest rate. We will consolidate Eminence Group results beginning in the third quarter," added Dabah.

For fiscal 2018, the sales are expected to range between $1,400 million-$1,440 million, representing an increase of 2-5 per cent from 2017 actual sales of $1,368.1 million. EBIT is likely to range between $91 million-$96 million, representing an increase of 4-10 per cent from 2017 actual EBIT of $87.4 million.

"Looking ahead, we expect the investments we made in our manufacturing facilities to start having positive impacts on our bottom line towards the second half of 2019. We are also excited about designer/influencer collections in Delta Galil Premium Brands, possible initiatives with online retailers, and the ability to introduce core Delta products through the Eminence distribution channels. With a strong balance sheet and cash position, we have the necessary financial resources to continue to invest, innovate and grow – both organically and through acquisitions," he concluded. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 14th Nov 2018

Vietnam ratifies trans-Pacific trade pact CPTPP

Vietnam’s 14th National Assembly recently adopted a resolution...

Courtesy: EU Chamber of Commerce

Textiles | On 14th Nov 2018

PRC promises unrealised: EU Chamber of Commerce in China

The European Union (EU) Chamber of Commerce in China has said the...

Zimbabwe’s firm sacks 200 as S Africa scraps trade pact

Apparel/Garments | On 14th Nov 2018

Zimbabwe’s firm sacks 200 as S Africa scraps trade pact

Zimbabwe’s apparel company Archer Clothing is witnessing fears of...

Interviews View All

Karel Williams, Dow Microbial Control

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Lucilla Booyzen,

Lucilla Booyzen

South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Silke Brand-Kirsch, Schlegel und Partner GmbH

Silke Brand-Kirsch
Schlegel und Partner GmbH

<div>Schlegel und Partner is the market research and consultancy company...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

Leave your Comments


November 2018

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

news category


Related Categories:

Advanced Search