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.
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.