Israel apparel firm Delta Galil's Q4FY21 net profits climb 92%

For fiscal 2021, net income was $120.3 million, compared to a net loss of $40.5 million for the same period last year. Excluding one-time items, net income for fiscal 2021 was $124.2 million, compared to $3.8 million for fiscal 2020.

The company has reported sales of $578 million for the fourth quarter of 2021, a 26 per cent increase compared to $459.7 million for the fourth quarter of 2020. Sales for 2021 was posted at $1,951 million, a 35 per cent increase from $1,446.2 million for the same period last year. Effective as of the second quarter of 2021, Delta Galil reorganised its business segments to better reflect and align with its strategic focus. The new segments – Brands (owned and licensed), Private Label, Delta Israel, 7 for All Mankind and Online Retailer – all contributed to the recent sales growth. Growth was also seen across all geographic regions and sales channels, the company said in a press release.

“We are very pleased to have completed 2021 with an exceptional quarter, reflecting the successful execution of our growth strategy. Throughout the year, we consistently delivered higher sales and better profitability, as demonstrated by Q4 representing our fourth consecutive quarter of record revenues and sixth consecutive quarter of record operating margin. We concluded the year with strong growth in all channels, geographies and segments, and expect momentum to continue in 2022. With a solid foundation in place and enhanced performance of our growth engines, we will continue to invest in our technology, manufacturing and distribution infrastructure to support our growth needs,” Isaac Dabah, CEO of Delta Galil, said.

The company is expecting fiscal 2022 sales to be in the range between $2,082 million and $2,135 million, representing an increase of 7-9 per cent, compared to 2021 sales of $1,951 million. Net income for 2022 is likely to be in the range between $138 million and $145 million, representing an increase of 11-17 per cent from 2021 net income of $124.2 million.

Fibre2Fashion News Desk (RR)