News Flash

Israel's Delta Galil's Q1 FY23 sales drop, margins hit record high

18 May '23

2 min read

Pic: Delta Galil

Insights

Delta Galil reported Q1 FY23 sales of $442.5 million, a-9 per cent drop from Q1 FY22.
However, gross margins rose to a record 39.1 per cent.
Q1 EBIT stood at $14.4 million, down from $34.2 million, while net income decreased to $3 million from $18.9 million last year.
The company's diluted EPS fell to $0.08 in Q1 FY23 from $0.67 in Q1 FY22.

Israel-based firm Delta Galil Industries Ltd, a global manufacturer and marketer of branded and private label apparel products for men, women, and children, has reported sales of $442.5 million for the first quarter (Q1) of fiscal 2023 (FY23), a-9 per cent decrease (6 per cent in constant currency) from $483.9 million in the same period last year. Despite the drop in sales, the company's gross margin for Q1 FY23 increased to a first-quarter record of 39.1 per cent, up from 37.9 per cent in Q1 FY22. The increased gross margin is primarily attributed to a better customer, channel, and segment mix, as well as lower freight costs.

The company's EBIT for Q1 FY23 was $14.4 million, a sharp drop from $34.2 million in the same period last year. When excluding non-core items, EBIT for Q1 FY23 was $19.8 million, compared to $34.2 million in Q1 FY22, the company said in a press release.

Net income for Q1 FY23 was $3 million, significantly lower than the $18.9 million recorded in the first quarter of the previous year. Diluted earnings per share for Q1 FY23 also decreased to $0.08, down from $0.67 in Q1 FY22.

The company reported EBITDA of $28.5 million for Q1 FY23, compared to $42.6 million in Q1 FY22.Top of Form

“Our first quarter performance was in line with our 2023 plan and expectations. During the quarter, we increased direct-to-consumer sales across both our own websites and our stores. In addition, we managed to reduce our inventory for the second consecutive quarter, while achieving a record first quarter gross margin, despite the heavily promotional retail landscape. We continue to focus on further streamlining our operations, strengthening our supply chain, and expanding our product portfolio to meet evolving consumer demands,” said Isaac Dabah, CEO of Delta Galil.

Fibre2Fashion News Desk (DP)

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