A swift swing toward branded products, helped by the July acquisition of Germany’s Schiesser, lifted Delta Galil Industries Ltd. to hefty bottom- and top-line increases for both the fourth quarter of last year and all of 2012.
In the three months ended Dec. 31, the Tel Aviv-based marketer of innerwear and performance apparel registered a 65.7 percent increase in net income to $13.9 million, or 55 cents a diluted share, from $8.4 million, or 36 cents, in the prior-year period. Operating income spiked 72.5 percent to $19.7 million.
Revenues rose 39.8 percent to $246.6 million from $176.4 million while gross margin advanced to 25.8 percent of sales from 21.2 percent in the 2011 period. Schiesser contributed $51 million to quarterly sales, without which revenues would have risen 11 percent.
Europe’s sales penetration rose to 40 percent in the fourth quarter, up from 26 percent in the prior-year period.
Delta closed its purchase of underwear maker Schiesser, for 68 million euros, or $85 million, in July after acquiring KN Karen Neuberger from CIT for $4 million in June. It purchased LittleMissMatched, a children’s hosiery and apparel firm, for an undisclosed sum in December. Last month it signed a global license with Columbia Sportswear Co. for men’s and women’s socks under the Columbia brand. The firm continued to strengthen its branded presence through licenses with Tommy Hilfiger and Kenneth Cole, as well as the Nearly Nude shapewear brand, acquired in 2011.
“We set out to grow the branded portion of the business through licensing and acquisition,” said Isaac Dabah, chief executive officer of the company. “We ended the year with about 48 percent of our business in branded products versus 15 percent just a few years ago. Schiesser helped.”
He noted that the company will boast of stronger direct-to-consumer penetration in 2013 through its purchase of LittleMissMatched, which operates seven stores in the U.S. and also reaches out to its preteen female constituency through its e-commerce site.
“It’s our first foray into U.S. retail, and the online component is just tremendous,” Dabah said, adding that expansion in branded business in the U.S., socks and its Israeli retail network will help it “approach” $1 billion in sales in 2013.
Guidance for 2013 includes revenues of between $910 million and $920 million, 11.3 to 12.5 percent above 2012 levels. Operating income, earlier projected to reach between $55 million and $60 million, is now expected to be between $57 million and $62 million, 12.5 to 22.4 percent above 2012 marks.
For the full year, net income more than doubled to $57 million, or $2.30 a diluted share, from $27.6 million, or $1.15. Excluding a series of nonrecurring items which in total lifted 2012 profits, income would have risen 23 percent. Sales were up 20.5 percent to $817.8 million from $678.8 million.
In trading in Tel Aviv following the disclosure of financial results Wednesday, shares of Delta Galil rose 3.9 percent to 5,278 Israeli new shekels, or $14.30 at current exchange.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast