Delta Galil Sees Sales Rise in First Quarter
Delta Galil, the Israeli-based apparel company whose California labels include 7 For All Mankind, Splendid, Ella Moss and P.J. Salvage, reported a 9 percent increase in sales for the first quarter of 2019.
Sales in the first quarter ending March 31 totaled $365.4 million compared to $334.5 million in the first quarter of 2018.
While sales were up, net income declined 60 percent in the first quarter to $3 million compared to $7.4 million the previous year.
“Our first-quarter results were impacted by the devaluation of the euro and the NIS [Israeli New Shekal] versus the U.S. dollar and a shift in holiday sales to the second quarter,” said Isaac Dabah, the company’s chief executive. “During the quarter, we continued to improve efficiencies at our factories and expect full operational status for 2019. Our Delta Galil premium-brand business [which includes the California labels] was not only impacted by the shift in holiday and the depreciation of the euro but also with new-store-opening expenses.”
Sales for 2019 are expected to range from $1.55 billion to $1.59 billion, which would be a 3 percent rise over 2018, when sales totaled $1.498 billion. Net income is predicted to be up 5 percent to 12 percent to $64 million to $67 million this year compared to $60 million last year.
In 2016, Delta Galil acquired 7 For All Mankind, Splendid and Ella Moss for $120 million. A year earlier, it acquired P.J. Salvage, a lingerie and intimate wear company headquartered in Irvine, Calif., for $34 million.