Delta Galil meets expectations in Q1 with top-line growth
Delta Galil Industries, Ltd. announced on Monday its first quarter results for fiscal 2016.
The company’s results were in line with expectations with sales increasing 2% to $256.7 million from $252.8 million in the previous first quarter. Operating income was $14.8 million versus $15.3 million in the previous year, but excluding the mark to market valuation loss of $1.5 million, the operating income increased 17% to $16.3 million from $13.9 million.
Net income also increased 13% to $9.0 million from $7.9 million and diluted earnings per share increased 13% to $0.35 from $0.31 both with the exclusion of the mark to market valuation. The company repurchased 163,216 shares under its share buyback plan, which represents 59% of the $7.5 million plan approved by the Board of Directors.
Isaac Dabah, CEO of Delta Galil, stated: “Our 2016 first quarter results were in line with expectations, reflecting a moderate top-line growth and a double-digit increase in operating profit before the effect of hedging. During the quarter, we began to benefit from investments made in 2015 to improve our business, as we saw a significant increase in Delta USA’s operating profit and meaningful improvements in our global upper market performance resulting from efficiencies in our owned factories.”
Part of the company’s positive sales growth in the quarter was due to the business performances in Europe and Israel. In the first quarter, the Puma brand license launched in Israel and proved to be successful.
“Looking ahead, we are focused on attaining double digit EBIT growth in 2017. We remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value, and with a strong balance sheet and cash position, we have the necessary financial resources to continue to invest, innovate and grow,” Mr. Dabah concluded.
The company reiterated its 2016 financial guidance and expects full year sales to range between $1,090 million to $1,110 million and full year diluted EPS to range between $1.93 and $2.02.
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