The Israeli textile group Delta Galil Industries LTD has successfully launched the 2025 financial year.
In the first quarter, the company, the portfolio of which also includes the German laundry brand Schiesser, achieved record sales and significantly higher profits, as Delta Galil announced on Thursday. Despite the positive development, the group faces new challenges through changed US trade policy.
In the three months to March 31, sales were $ 498.7 million (around 460 million euros). Delta Galil exceeded the previous year’s level by eleven percent, a new record for the opening quarter. According to the company, growth in all segments and sales channels as well as a strong increase in online sales of their own brands by 21 percent.
Delta Galil increases profit despite the sunken margin
However, the gross margin was 40.6 percent in the first quarter and thus below the previous year’s value of 42.3 percent. The decline is due to increased freight costs, unfavorable exchange rates and lower export funding in Egypt, the group said. Nevertheless, Delta Galil was able to increase his operational profit (EBIT) by 26 percent to $ 32.7 million thanks to higher sales and strict cost discipline. Adjusted for special effects, EBIT was also $ 32.7 million, an increase of eleven percent compared to the previous year. The net profit increased by a remarkable $ 17.6 million in the first quarter.
Despite all successes, the group withdrew its annual report for the year as a whole due to new US tariffs to imports and the associated uncertainties. Delta Galil is working on cushioning the effects due to optimized production and procurement strategies as well as cost savings from $ five to seven million. The group estimates the maximum burden of the operational result by the current tariffs at up to $ 20 million.
“We are well positioned to grow in a challenging economic environment and to gain market shares,” emphasized CEO Isaac Dabah. The company’s geographically diversified production locations offer strategic advantages in commercial barriers. Dabah also confirmed the long -term goal of creating added value for customers through innovation, sustainability and strong brands: inside and shareholders: to create inside.