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Industry Talk

Delta Galil anticipates record year

Company has ceased operations at a factory in China and moved operations to a new factory in Vietnam.

16th August 2022

Innovation in Textiles
 |  Caesarea, Israel

Reporting record sales for the first six months of 2022, knitwear leader Delta Galil, headquartered in Caesarea, Israel, has been making moves to realign its manufacturing footprint in order to improve production flexibility and efficiencies, while reducing its manufacturing presence in China.

As a result, during the second quarter of 2022, the company ceased operations at the Bogart’s factory in Shenzhen and moved its operating activity to a new factory in Vietnam. The company recorded a $5.5 million expense during the second quarter of 2022 associated with employee severance and related costs.

The company reported record sales of $491.3 million in the second quarter of 2022, an 8% increase from $455.8 million in the second quarter of 2021. In constant dollars, second quarter sales increased 11% from the prior-year period. Sales were driven primarily by strong growth within the company’s Private Label segment. First-half sales were $975.1 million, a 12% increase from $871.9 million in the prior-year period. In constant dollars, first-half sales increased 14% from the prior-year period.

“Positive momentum continued across many aspects of our business,” said CEO Isaac Dabah. “Our record results reflect the powerful and diversified platform we have built, our innovative products, compelling brands, broad customer base and the successful execution of our growth strategy.

“We believe we are well positioned to successfully navigate the challenging retail environment while pursuing our long-term growth initiatives. In July 2022, as part of our global strategy to grow our digital presence and increase our focus on sustainable apparel and brands, we acquired Organic Basics, a digitally-native brand known for its sustainably and ethically made underwear, activewear and base layers. We see a significant opportunity to grow the Organic Basics brand globally, particularly in the USA and Europe, and we are excited to launch an expanded collection of products in 2023. We are confident that our diversified business model, strong balance sheet and global workforce will position us to meet our targets, and we expect 2022 to be a record year for sales and profitability.”

As a global manufacturer and marketer of branded and private label apparel products, Delta Galil develops seamless apparel including bras, shapewear and socks, intimate apparel for women and extensive lines of underwear for men. It also designs, develops markets and sells branded denim and apparel under the brand 7 For All Mankind, and ladies apparel under the brand Splendid. In addition, it sells its products under brand names licensed to the company, including adidas, Wolford, Wilson, Columbia, Tommy Hilfiger and others.

www.deltagalil.com

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