Israeli fashion conglomerate, Delta Galil Industries, has reported impressive financial results for the fourth quarter and full year of 2019. The company’s net income saw a significant increase of 44% during the final quarter, reaching $35.6 million compared to $24.7 million from the previous year. Diluted earnings per share also experienced a notable rise of 45%, going from $0.97 to $1.40. The company’s quarterly sales also saw growth, with a rise of 11% to $504.8 million compared to $454.3 million in 2018.

For the entire year of 2019, Delta Galil reported a strong double-digit increase in sales, reaching 13% and totaling $1.7 billion. Net income also rose by 20% to $57.7 million, while diluted earnings per share experienced a growth of 19% to $2.26. The company attributes its success to successful growth in the global upper market, Delta Israel, and European brands segments, as well as significant growth in its e-commerce channel.

Delta Galil has been actively expanding its online presence through strategic acquisitions, such as the purchase of online bra-fitting specialist Brayola and intimates group Bogart based in Hong Kong. CEO Isaac Dabah expressed satisfaction with the company’s performance and emphasized their commitment to investing in new products and resources in order to maintain sustained growth. With a strong balance sheet, Delta Galil is well-positioned to continue innovating and expanding.

However, despite the positive performance in 2019, Delta Galil’s outlook for 2020 has been overshadowed by concerns about the impact of the ongoing coronavirus outbreak. The company predicts losses of between $5 million and $7 million in the first half of the year as a result of the epidemic. Full-year net income is projected to be between $57 million and $62 million, with diluted earnings per share ranging from $2.23 to $2.42. Sales for 2020 are expected to have a modest increase of 3% to 5%, reaching between $1,740 million and $1,770 million.

Following the announcement of Delta Galil’s 2020 outlook, the company’s shares fell 9% during Wednesday’s trading session in Tel Aviv. Despite the uncertainty caused by the coronavirus outbreak, the company remains committed to driving sustained profitability and long-term shareholder value through innovation and growth.

Useful links:
1. Delta Galil Industries Official Website
2. Brayola Official Website