Sales of Israel-based apparel firm Delta Galil up 4% in FY22

E-commerce sales on the company's websites showed a decrease of 6 per cent year-on-year (YoY) to $62.8 million in the fourth quarter, and a 13 per cent decline in the full year, amounting to $220.6 million compared to $253.6 million in FY21. The decline in sales followed a shift in consumer behaviour from online shopping to physical retail stores amid the easing of COVID-19 restrictions, the company said in a press release.

EBIT for Q4 FY22 decreased by 12 per cent YoY to $57.2 million, while EBIT for FY22 decreased by 2 per cent YoY to $185.1 million. However, EBIT before non-core items increased by 1 per cent YoY to $190.2 million in FY22, compared to $188.1 million in FY21.

Net income for the fourth quarter was $37.7 million, a 17 per cent decrease from the same period in the previous year, while net income for the full year decreased by 4 per cent YoY to $115.4 million.

Despite the decline in sales and net income, the company's diluted earnings per share for the fourth quarter and full year decreased by 16 per cent YoY to $1.35 and 3 per cent YoY to $4.14, respectively.

Delta Galil's EBITDA for the fourth quarter decreased by 12 per cent YoY to $65.6 million, while EBITDA for FY22 increased by 1 per cent YoY to $224.2 million.

For FY23, the company expects net sales to be in the range of $2,000-$2,080 million, while EBIT is estimated to be around $192-$203.8 million. Delta Galil's EBITDA is projected to be between $285.7 million and $297.5 million, while the net income is expected to be around $120.9-$130.2 million. The diluted EPS is projected to be in the range of $4.27-$4.62.

“We achieved record annual sales in 2022, driven by sales growth across all of our geographies and within all of our segments, on a constant currency basis. Our performance throughout the year is especially noteworthy as our global teams continued to navigate challenging economic conditions, increased customer inventories and higher promotional activities. During the fourth quarter, we reduced our inventories and generated strong cash flows which further strengthened our balance sheet,” said Isaac Dabah, CEO of Delta Galil.

Fibre2Fashion News Desk (DP)