Delta Galil Industries, an Israeli manufacturer of branded and private label apparel products, reported 25 per cent sales growth to $416.1 million in its first quarter (Q1) FY21 ended on March 31, 2021, compared to sales of $332.7 million in the corresponding period previous fiscal. The company’s net income was $15.0 million (Q1 FY20: loss $30.5 million).
“We are very pleased with our growth momentum and strong first quarter results, which reflect three consecutive quarters of record operating margin. Our operating profit increased significantly, driven by higher sales across all segments, with particular strength in our online sales, our gross margin improvement, and the effective implementation of the efficiency measures we started to put in place at the middle of last year,” Isaac Dabah, CEO of Delta Galil, said in a press release.
Gross profit for Q1 FY21 rose to $159.0 million ($113.7 million). The company’s operating income was $27.9 million ($15.8 million), whereas e-commerce own websites sales increased 272 per cent to $70.8 million ($19.0 million).
“Our operating cash flow continues to be strong, enabling us to reduce our debt to the lowest level in the last three years. With our strong balance sheet, we have the necessary resources to deliver continued innovation and growth, and we look forward to a strong year,” Dabah said.
According to the company, excluding the sales of Bare Necessities, which Delta Galil acquired in Q4 FY20, first quarter 2021 sales rose 18 per cent, primarily driven by Delta Israel, Delta global upper market and Delta US segments, as well as other segments.
Fibre2Fashion News Desk (JL)
Delta Galil Industries, an Israeli manufacturer of branded and private label apparel products, reported 25 per cent sales growth to $416.1 million in its first quarter (Q1) FY21 ended on March 31, 2021, compared to sales of $332.7 million in the corresponding period previous fiscal. The company's net income was $15.0 million (Q1 FY20: loss $30.5 million).