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Mr. Dabah added, "We expect continued growth in sales and profitability in 2025. Our positive outlook demonstrates the success of the multi-year growth strategies we are pursuing with our strategic partners, as well with our brands, the investments we have made to enhance profitability and drive efficiencies in our factories, and the actions we have taken to improve our balance sheet. Looking ahead, our near-term priorities include increasing sales and profitability with our global licenses and new brands, implementing further realignment plans to improve the efficiency and profitability of our factories, and developing new categories with our main customers. We believe this positive momentum will support our business in 2025, as we look to increase sales, expand margins, and enhance our position as a leader in the global intimates and activewear market."

Sales

The Company reported record fourth quarter 2024 sales of $599.2 million, an 18% increase from $508.6 million in the fourth quarter of 2023.

Sales for the 2024 full year were $2,045.7 million, a 10% increase from $1,857.7 million in the prior-year period.

Gross Margin
Gross profit in the fourth quarter amounted to $250.1 million compared to $219.1 million in Q4 2023.

Gross profit in 2024 amounted to $856.3 million compared to $760.6 million in 2023.

Gross margin in the fourth quarter of 2024 was 41.7% compared to 43.1% for the same period last year. The year-over-year reduction in the fourth quarter gross margin was due primarily to higher freight costs, lower tax rebates in our Egyptian operations and segment mix.

Gross margin for the 2024 full year increased by 100-basis points to a record 41.9%, compared to 40.9% in the prior-year period. The year-over-year gross margin increase was due primarily to higher volume production in the Company’s factories due to an increase in Private Label segment sales, and an increase in more profitable DTC sales, partially offset by higher freight costs.

EBIT

EBIT before non-core items in the fourth quarter of 2024 was $64.7 million, or 10.8% of sales, compared to $56.2 million, or 11.0% of sales, in the same period last year.

EBIT in the fourth quarter of 2024 was $53.1 million, compared to $56.2 million, in the fourth quarter last year.

EBIT before non-core items in the full year 2024 was $184.1 million, or 9.0% of sales, compared to $153.0 million, or 8.2% of sales, in the full year 2023.

EBIT in the full year 2024 was $169.2 million, compared to $144.9 million in 2023.

The year-over-year increase in annual EBIT was due to higher sales and improved gross margin.

Non-Core Items

For the fourth quarter of 2024, the Company recorded non-core expenses associated with realignment plans of $6.2 million and expenses related to impairment of non-financial assets of $5.3 million. The Company recorded no non-core items in the fourth quarter of 2023.

In 2024, expenses associated with realignment plans were $9.6 million and expenses related to impairment of non-financial assets were $5.3 million, compared to $11.4 million of expenses related to realignment plans, a $4.0 benefit from the change in the fair value of an earn-out liability, and $0.7 million of deal costs in 2023.

Net Income

Net income excluding non-core items, net of tax in the fourth quarter of 2024, increased 8% to $41.0 million, compared to $37.8 million in the fourth quarter of 2023.

Net income in the fourth quarter of 2024 was $29.5 million, compared to $37.8 million in the same period last year.

Net income excluding non-core items, net of tax, in the full year 2024 increased 18% to $108.5 million, compared to $91.6 million in 2023.

Net income in the full year 2024 increased 11% to $94.6 million, compared to $85.3 million in 2023.

Diluted Earnings Per Share

Diluted earnings per share, excluding non-core items, net of tax, increased 9% to $1.43 in the fourth quarter of 2024 compared to $1.31 in the fourth quarter of 2023.

Diluted earnings per share in the fourth quarter of 2024 were $1.00, compared to $1.31 in the fourth quarter last year.

Diluted earnings per share, excluding non-core items, net of tax, increased 18% to $3.82 in the full year 2024 compared to $3.25 in the same period of 2023.

Diluted earnings per share in full year 2024 were $3.29 compared to $3.02 in 2023.

EBITDA, Cash Flow, Net Debt, Equity, and Dividend

EBITDA, excluding IFRS 16, in the fourth quarter of 2024 increased 15% to $72.4 million, compared to $62.9 million in the fourth quarter of 2023. In the full year 2024, EBITDA, excluding IFRS 16, increased 19% to $217.1 million, compared to $182.6 million in the full year 2023.

Cash flow generated from operating activities, excluding IFRS 16, was $64.3 million, compared to $82.3 million in the fourth quarter of 2023. Cash flow generated from operating activities, excluding IFRS 16, was $153.1 million in the full year 2024, compared to $181.9 million in the full year 2023. The year-over-year reduction in full-year operating cash flow was primarily attributable to changes in working capital, mainly inventory, to support expected sales growth and new product launches, compared to a deliberate decrease in inventory last year, which resulted from a slowdown in the acquisition of new inventory and the sale of inventory from previous seasons.

Net financial debt, excluding IFRS 16, at December 31, 2024, remained at a similar level at $126.5 million, compared to $123.4 million at December 31, 2023.

Equity on December 31, 2024, was a record of $803.6 million, up 5% from $768.4 million on December 31, 2023.

Delta Galil declared a dividend of $10 million, or $0.384 per share, which will be distributed on February 26, 2025, with a record and "ex-dividend" date of February 19, 2025.

2025 Financial Guidance

The Company’s guidance excludes non-core items, includes IFRS 16, and is based on 1.05 US $ per 1 Euro and 3.60 NIS per 1 US $.

These forward-looking statements are based largely on the expectations of the Company and are subject to uncertainties including macroeconomic trends. Actual results may differ materially from those included in the guidance as a result of risks and uncertainties which cannot be fully predicted. There is no certainty that the aforementioned conditions will occur, and actual results may be significantly different from those forecasted or implied above.

Constant Currency - Excluding the Impact of Foreign Currency
This release refers to "reported" amounts in accordance with IFRS accounting principles ("GAAP"), which include translation and transactional impacts from foreign currency exchange rates. The release also refers to "constant dollar" amounts, which exclude the impact of translating foreign currencies into U.S. dollars, and are considered a non-GAAP financial measure. These constant currency performance measures should be viewed in addition to, and not in lieu of, or superior to, Delta Galil’s operating performance measures calculated in accordance with GAAP.

About Delta Galil Industries
Delta Galil Industries is a global designer, manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually endeavored to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; underwear for men including under its owned brands Schiesser, Eminence, Organic Basics, and Athena; babywear, activewear, sleepwear, and loungewear including under its owned P.J. Salvage and Delta brands. Delta Galil also designs, develops markets and sells branded denim and apparel under the brand 7 For All Mankind®, and ladies’ and kids’ 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, Polo Ralph Lauren and others. For more information, visit www.deltagalil.com.

Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, tax rates in the various countries the company operates in, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250211948418/en/

Contacts

For more information:
Nissim Douek
+972-54-5201178
Nissim@unik.co.il

U.S. Media Contact:
Stacy Berns
Berns Communications Group
+1-212-994-4660
sberns@bcg-pr.com