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.RELATED CONTENT: Click Here for More Earnings Coverage >>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.
“I grew up in New York but I hadn’t really experienced the city in any type of touristy way…This was probably the first museum I really explored and took the time to see,” said @haileybaldwin of the @whitneymuseum. On Tuesday night, Baldwin was joined by Jemima Kirke and more at the annual Whitney Museum Gala and Studio Party, which honored Lorna Simpson, Joanne Leonhardt Cassullo and Beth Rudin DeWoody. See more photos on WWD.com. #wwdeye (📷: @lexieblacklock)
Displayed starting this week at the @fashiontextilemuseum: An exhibition on designer @orlakiely titled “Orla Kiely: A Life in Pattern,” which spans two decades and contains more than 150 pieces. “I want people to come away loving pattern and print. It’s something that makes you feel so good,” said the designer during a preview of the exhibit. Also on show are mood boards, samples, sketches and more. Head to WWD.com to see more photos. #wwdfashion
Exclusive: @dsquared2 signs fragrance licensing agreement with Euroitalia, with the first effort of the new partnership being unveiled in September. The brand will launch two scents – one for men and one for women – in Italy. Read our interview with designer Dean and Dan Caten on WWD.com. #wwdbeauty #wwdnews (📷: @zefashioninsider)
@louisvuitton has officially renewed Nicolas Ghesquière’s contract as artistic director of women's collections. "I am very pleased to open the next chapter of the story I started with Louis Vuitton almost 5 years ago," said Ghesquière, who first signed on to design the French luxury brand's women's line in 2013. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @giovanni_giannoni_photo)
“I learned then and there that I had to figure out a way in life to maintain and preserve my sense of pride when I felt good about what I did or what I represented or created,” said @saintrecords on how being bullied for wearing capri pants inspired her to be the artist she is today. Knowles was at the 70th Parsons Benefit last night where she outbid the room for a Dapper Dan customized @gucci experience. #wwdeye (📷: @lexieblacklock)
“There’s this amazing braintrust of people who know the whole universe so well. So we talked to them and they gave us more input,” said actor Alden Ehrenreich on playing the young Han Solo in “Solo: A Star Wars Story.” The cast was at NYC’s SVA Theatre last night for an advanced screening of the film, which hits theaters this week. #wwdeye #starwars #hansolo (📷: @aurorarosedecrosta)
@asaprocky spent nearly two hours in a Plexiglas box Sunday night at @sothebys putting himself through a series of “tests” to demonstrate the process of completing his new album called “Testing.” Get all the details and see all the pictures on WWD.com. #wwdeye
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion (📷: Dan Doperalski)