The Israeli textile group Delta Galil Industries Ltd. increased its sales again in the third quarter of the 2025 financial year. The parent company of German lingerie brand Schiesser was able to maintain its own retail momentum and improve margins despite ongoing challenges from tariff increases and “macroeconomic headwinds,” according to an interim statement published on Wednesday.
In the third quarter, group sales rose by three percent to 539 million US dollars (512 million euros). The gross margin increased from 41.6 percent to 43.3 percent, but earnings before interest and taxes (EBIT) adjusted for special items fell by two percent to $51.2 million. According to the company, this was due to higher costs resulting from currency fluctuations, retail expansion, Passionata brand integration and SAP implementation.
The net profit attributable to the shareholders was 29.0 million US dollars (25.2 million euros), almost five percent below the corresponding previous year’s level. Adjusted for special items, quarterly net income increased by two percent to $32.8 million.
In the first nine months of 2025, sales grew by four percent compared to the same period last year and reached $1.51 billion. Net profit attributable to shareholders was $60.3 million, slightly higher than the corresponding prior year level (+0.3 percent).
Despite additional tariff burdens, the annual forecasts remain unchanged
Management explained that the recently decided abolition of the “de minimis” rule for imports into the USA would result in additional customs charges amounting to around three million US dollars in the current year. Overall, the company now expects the effects of all tariff increases to reduce operating profit by $25 million in 2025.
Nevertheless, the group stuck to its annual forecasts. He still expects sales in the range of $2.110 to $2.135 billion and a net profit of between $97 and $101 million.
CEO Isaac Dabah highlighted that the group’s recent results demonstrated the company’s “strength and resilience” in the face of tariff pressure. “We have continued to make strategic investments in our factories and distribution centers to improve efficiency,” he emphasized in a statement. “At the same time, we have expanded our retail networks in Germany and Israel.” In 2026, the focus will continue to be on innovation, operational excellence and strategic capital investments, said Dabah.
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