After meager quarterly figures: Delta Galil cuts annual forecasts

The Israeli textile group Delta Galil Industries Ltd. suffered losses in sales and earnings in the first quarter of the 2023 financial year. Overall, the current figures were in line with expectations, the parent company of the German underwear brand Schiesser said on Thursday. However, the prospects for the year as a whole are now more cautious.

In the period from January to March, group sales were 442.5 million US dollars (409.2 million euros) and thus 9 percent (currency-adjusted -6 percent) below the level of the same quarter in the previous year. The result fell even more sharply. Adjusted operating income fell 42 percent to $19.8 million and net income attributable to shareholders fell 88 percent to $2.1 million.

In view of the figures available, management now only expects results for the financial year as a whole “at the lower end” of its previous forecast ranges. Specifically, it now expects revenue of about $2.00 billion and net income of about $120.9 million. However, CEO Isaac Dabah emphasized that the group expects sales growth and increasing profitability for the second half of the year.

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