UJA HONOREES: More than 200 industry apparel executives turned out for the UJA Federation Apparel Division’s award gala at the Roosevelt Hotel in Manhattan during market week for two executives from the innerwear manufacturing and retail fields: Nancy Wade, divisional merchandise manager of the intimate apparel operation at Wal-Mart Stores, and Dov Lautman, chairman of Tel Aviv, Israel-based Delta Galil Industries. They were presented with Distinguished Service Awards for their contributions to the fashion apparel industry and community involvement.
DELTA’S FIGURES: Softer North American sales coupled with special charges slashed Delta Galil Industries Inc.’s first-quarter revenues and bottom line.
For the three months ended March 31, the Tel Aviv, Israel-based company reported a 36.8 percent drop in net earnings to $1.8 million, or 10 cents a diluted share. That compares with net income of $2.9 million, or 15 cents, a year ago. During the first quarter, the intimate apparel maker took one-time charges aggregating to $800,000, or 4 cents, related to the cancellation of a supplier contract, the shuttering of a Dominican sewing plant and other write-offs. Excluding the charges, the company would have posted first-quarter profits of $2.6 million, or 14 cents a share.
Total revenues for the period fell 7.1 percent to $124.8 million from $134.3 million a year ago. North American sales, which account for 52 percent of Delta Galil’s total, slumped 12 percent to $64.5 million compared with $73.5 million in last year’s first quarter.
Chief executive officer Arnon Tiberg attributed the lower sales to weak U.S. retail conditions, especially in the specialty and department store segments.
Partially offsetting the North American revenue decline was a 5 percent increase in sales to the company’s biggest customer, U.K. chain Marks & Spencer, which purchased $37.6 million of Delta Galil’s wares in the quarter.