Delta Galil reported that its sales increased 12 percent to $284.6 million for the third quarter.
The Tel Aviv-based manufacturer of branded and private label apparel said activewear led the company’s sales to increase by double digits over the first nine months of 2015. The company also noted that a rising proportion of its sales were coming from its branded products.
Net income for the quarter was $14.1 million, compared to $13.9 million for the same period in 2014 for an increase of 2 percent. Earnings per share were flat at 55 cents.
Delta Galil reiterated its guidance for the full-year 2015 sales, which are expected to be in the range of $1.08 million to $1.095 million. The forecasted sales includes contributions from the PJ Salvage brand. Full-year 2015 net income is expected to be in the range of $48.5 million to $51.5 million representing an increase of up to 6 percent over 2014.
The company also highlighted plans for next year as well. Isaac Dabah, chief executive officer of Delta Galil, stated, “Earlier this year, we acquired the PJ Salvage brand, providing an opportunity to expand our presence in sleepwear and loungewear, attract a Millennial customer base, and strengthen our position in the upper market. We are also excited about our license agreement with Columbia for men’s and ladies’ underwear, launching in 2016; our new seamless R&D center at Nike HQ in Oregon; and a new factory in Vietnam set to open in the 2016 first half.”
The company’s debt rose from $77.3 million last year to $123.5 million this year due to the acquisition of the PJ Salvage brand. The company also declared a dividend of $0.139 per share or $3.5 million. The stock is traded in the U.S. at the over-the-counter markets and is up more than 11 percent for the past year to trade lately at $30.10.