The Israeli textile group Delta Galil Industries Ltd. had to pay tribute to the adverse economic conditions in the third quarter of the 2023 financial year.
On Thursday, the parent company of the lingerie brand Schiesser reported losses in sales and earnings. However, the company, which recently announced the takeover of the Passionata label, emphasized that it had made progress in implementing its strategic reform projects and, for example, was able to reduce inventories and improve gross margins.
In the period from July to September, the group achieved sales of 463.0 million US dollars (423.7 million euros). This corresponded to a decline of 9.6 percent (-9.8 percent adjusted for currency effects) compared to the same quarter of the previous year. Management justified the losses with the “continued slowdown in global consumer spending”.
Management recently lowered its annual forecasts
Despite a higher gross margin, operating income fell 16.3 percent to $46.1 million. The net profit attributable to shareholders shrank by 17.8 percent to 28.7 million US dollars (26.3 million euros).
In the first nine months of the year, consolidated sales amounted to 1.35 billion US dollars and fell short of the previous year’s level by 9.3 percent. Net income attributable to shareholders fell 39.4 percent to $44.8 million.
In view of the latest developments, the company had already revised its annual forecasts downwards at the end of October. The 2023 revenue target was lowered from $2.00 billion to $1.84 billion to $1.88 billion. In addition, the group now only expects a net profit of between 87.5 and 95.1 million US dollars, after previously targeting a surplus of 120.9 million US dollars.