Strong results in Germany and throughout Europe helped Tel Aviv-based Delta Galil Industries Ltd. increase sales, margins and profits in the first quarter.
The company raised earnings and sales guidance for the year, pushing anticipated revenues further above the $1 billion mark it had previously said it expected to surmount during the current year.
In the three months ended March 31, net income grew 40.2 percent to $9.3 million, or 34 cents a diluted share, from $6.7 million, or 26 cents, in the 2013 period.
Revenues expanded 4.8 percent to $238.1 million from $228.3 million. Gross margin escalated to 30.4 percent of sales from 28.4 percent in the prior-year period, helping operating income to increase 28.3 percent, to $14.8 million.
The company said that the accretive effect of the higher gross margin was partially offset by an increase in selling and marketing expenses reflecting investments in the expansion of the business, which has reported organic sales growth for 18 consecutive quarters.
Isaac Dabah, chief executive officer, said that diversification into more branded products, activewear and retail operations helped lift profitability.
“Our top-line performance was highlighted by rising sales in Germany and the rest of Europe and stable results in North America,” he said. “We are enthusiastic about our prospects for the balance of 2014, which is expected to be our first year of sales in the $1 billion-plus range.”
Sales for the year, earlier projected to be between $1.035 billion and $1.065 billion, are now anticipated to reach $1.045 billion to $1.075 billion. Sales last year were $974.7 million. Diluted earnings should reach $1.95 to $2.14 a share versus the previous forecast of a range between $1.93 and $2.11 and last year’s earnings per share of $1.75.
The firm, which expanded its penetration in Europe and in men’s with its purchase of Schiesser AG in 2012, remains interested in expansion through various means, including acquisitions and licensing. It ended the quarter with $51.2 million in cash and cash equivalents on its balance sheet, $10 million higher than a year ago.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
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“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