Caesarea - Seamless activewear specialist Delta Galil has reported a drop in sales for its third quarter, hurt by a global slowdown in consumer spending.
Total sales for the third quarter ending September 2023 were down 9.6% to $463.0 million with net income down to $29.5 million from $36,1 million compared to the same period last year.
On a brighter note, quarterly online sales of the company’s own brands, which include Schiesser, P.J. Salvage, Eminence, Delta and Athena, increased 26% compared to the third quarter of last year.
“During the third quarter, we made strong progress executing against previously disclosed strategies aimed at reducing inventory levels, expanding gross margin, and generating strong operating cash flow," said Isaac Dabah, CEO of Delta Galil. "In addition, we achieved a strong, double digit EBIT margin, despite lower sales and SG&A deleverage due to our record third quarter gross margin and the benefits of our previously implemented cost efficiency efforts.
"This strong financial position provides us with significant flexibility to further invest in our brands, support our customers, and pursue long-term growth opportunities. I am also excited to announce that on November 14, 2023, we announced the acquisition of Chantelle Group’s Passionata brand. We have a long history of growing brands, and we are excited to strengthen our position and presence in women's intimates across 18 different countries and various distribution channels.”
Delta said it expects 2024 to be a strong year with meaningful revenue and profitability growth compared to 2023, and at similar level of 2022 record annual results.
"We expect the challenging macro environment to continue into 2024, but we believe we are well positioned to navigate these challenges and take advantage of opportunities that support our strategies aimed at creating long-term value for our shareholders," Dabah added.
“While we navigate a challenging macro environment, we remain committed to pursuing profitable growth initiatives and during the third quarter Delta own branded web sales increased across all segments driven by higher traffic.
"This reflects our continued focus on growing our direct-to-consumer channels, while simultaneously developing new and innovative products for our customers.”