Delta Galil sales jump 20% to $446.1 mn in Q3 of 2019

November 16, 2019 - Israel

Sales for Delta Galil, a manufacturer and marketer of branded and private label apparel products, increased 20 per cent to $446.1 million in third quarter ending September 30, 2019, from $370.8 million in Q3 of 2018. Excluding Bogart, which was acquired on July 2, 2019, sales in original currency increased by 6 per cent as compared to third quarter of 2018.

E-commerce sales on Delta’s own website grew by double digits. Operating profit grew 57 per cent to $26.7 million in the third quarter of 2019, from $17 million in the third quarter of 2018.

EBITDA increased 46 per cent to $51.5 million in the third quarter of 2019, from $35.3 million in the same quarter last year. Net income increased by 46 per cent to $14 million for the 2019 third quarter from $9.6 million in the same quarter of 2018.

Sales for the first nine months of 2019 increased 14 per cent to $1,185.4 million, from $1,044.2 million for the same period of 2018. Excluding Bogart and Eminence sales in the first six months, sales in original currency increased by 5 per cent as compared to the first nine months of 2018.

Net income for the first nine months of 2019 totalled $22.1 million, compared to $23.5 million for the same period last year, a 6 per cent decrease.

“We are pleased with our third quarter results, which reflect our balanced and diversified mix of businesses, products and markets. We benefited from a strong performance of our Socks and Seamless categories and our Global Upper Market and Delta Israel segments. We successfully concluded the acquisition of The Bogart Group. Looking ahead, we will focus on driving organic growth and seek new opportunities to apply our competitive and financial strengths to deliver shareholder value,” said Isaac Dabah, CEO of Delta Galil.  

"Looking forward, we are focusing on further growing these business segments and improving the performance of our DGUSA and Delta Premium Brands by implementing a structured strategic and operational plan, added Dabah.

The third quarter represented the first time we consolidated results for The Bogart Group. We intend to leverage its strong market position going forward, particularly as we see opportunities for it to strengthen DGUSA’s product assortment. Additionally, we plan to focus on growing the Eminence ladies and kids products, while leveraging the European brands infrastructure for selling Delta products.

Looking ahead, we will focus on driving organic growth, and seek new opportunities to apply our competitive and financial strengths to deliver shareholder value.”

Delta Galil is updating its 2019 financial guidance, excluding one-time items. The updated guidance includes the impact from expected higher tariffs on imported products from China to the US and costs related to recall of damaged goods shipped to a primary customer, which in total are estimated to be up to $4 million.

The full-year 2019 sales are expected to range between $1,650 million-$1,690 million, representing an increase of 10-13 per cent from 2018 actual sales of $1,498 million.

The full-year 2019 EBITDA is expected to range between $183 million-$187 million, representing an increase of 41-44 per cent from 2018 actual EBITDA of $130 million.

The full-year 2019 net income is expected to range between $60 million-$62 million, representing an increase of 0-3 per cent from 2018 actual net income of $60 million.