Delta Galil disclosed a remarkable 10% surge in its full-year sales for 2024 (FY24), up from the $1.85bn reported in the previous year.
In the fourth quarter, Delta Galil posted record sales of $599.27m, marking an 18% increase from the fourth quarter of 2023’s $508.60m. This growth spanned across all segments, channels, and geographic regions.
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Delta Galil CEO Isaac Dabah said: “Delta’s strong fourth quarter financial results produced a record year of sales and robust profitability, reflecting our team’s resilience, creativity, and dedication in achieving excellent results.
“This performance generated strong operating cash flow excluding IFRS 16 of $153m for the full year 2024. Strong profitability and operating cash flow also allowed us to return a record $33m of dividends back to our shareholders, a 24% increase over the prior year.”
Delta Galil’s key operational performance metrics in FY24
The company’s gross profit climbed to $856.29m in FY24 from $760.59m in 2023, marking a gross margin increase of 100 basis points to an all-time high of 41.9%.
This improvement in gross margin is attributed primarily to the uptick in production volume within the company’s factories, spurred by heightened sales in the private label segment and a rise in direct-to-consumer (DTC) transactions that typically yield higher profitability. However, this was somewhat counterbalanced by increased freight costs.
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By GlobalDataDelta Galil’s earnings before interest and taxes (EBIT) for the year also reflected positive momentum, ascending to $169.16m from $144.93m in 2023, bolstered by the dual impact of elevated sales and enhanced gross margins.
The company recorded net income of $94.63m in FY24, increasing 11% compared to $85.34m in the prior year.
When excluding non-core items after tax adjustments, net income saw an even more impressive 18% rise to $108.50m from $91.60m in 2023.
The company’s diluted earnings per share (EPS) also rose from $3.02 in 2023 to $3.29 in FY24. Excluding non-core items net of tax, diluted EPS escalated by 18% to $3.82 for the full year of 2024 against the previous year’s $3.25.
Delta Galil’s Q4 performance
Net income for Q4 FY24 decreased 22% to $29.52m from $37.78m in the same period a year ago.
Diluted EPS for Q4, excluding non-core items net of tax, improved by 9% to $1.43 compared to $1.31 in Q4 of 2023, while reported diluted EPS for Q4 decreased to $1.00 from Q4 of last year’s $1.31.
EBIT before non-core items for Q4 stood at $64.7m or 10.8% of sales, slightly down from the previous year’s Q4 at $56.2m or 11% of sales.
Delta Galil’s FY25 guidance
Delta Galil projects a sales increase between 4% to 6%, estimating a range between $2.11bn and $2.16bn.
The company expects net income to grow by 4%-9%, potentially hitting between $112m and $118m. Diluted EPS is forecasted to land between $3.92 and $4.15.
The company also anticipates EBIT for FY25 to be between $192m and $200m.
Dabah added: “We expect continued growth in sales and profitability in 2025. “Looking ahead, our near-term priorities include increasing sales and profitability with our global licenses and new brands, implementing further realignment plans to improve the efficiency and profitability of our factories, and developing new categories with our main customers. We believe this positive momentum will support our business in 2025, as we look to increase sales, expand margins, and enhance our position as a leader in the global intimates and activewear market.”
