DELTA GALIL REPORTS INCREASED EARNINGS IN SECOND QUARTER
Delta Galil Industries, Ltd, a global manufacturer and marketer of branded and private label apparel products for men, women and children, as well as leisurewear, activewear and denim, has reported its results for the second quarter ended June 30, 2018.
Diluted earnings per share before one-time items increased 3 percent in the 2018 second quarter, and amounted to $0.36, compared to $0.35 in the same quarter last year. Net income was $6.5 million including a one-time non-recurring charge of $3.95 million related to acquisition costs of European brand Eminence, compared to net income of $8.9 million for the 2017 second quarter. Excluding the acquisition-related cost, net income for the 2018 second quarter was $9.1 million. The company also reported sales of $338.9 million for the second quarter of 2018, relatively flat from $340.5 million in the second quarter 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,” said Isaac Dabah, CEO of Delta Galil. “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. In addition, 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 company also reaffirmed its 2018 financial guidance excluding one-time items and the positive impact expected from the Eminence Group acquisition. “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 201,” said Dabah. “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.”
