Delta Galil posts sales boost and record profit in Q4, full year
Delta Galil on Wednesday reported steep increases in sales, net income and operating profit for the fourth quarter and full year 2016.
Fourth quarter net sales jumped 31% to $376.3 million from $287.1 million in the previous fourth quarter. Operating profit increased 80% to $32.3 million, net income increased 51% to $18.5 million and diluted earnings per share increased 52% to $0.73 per share from $0.48 in the fourth quarter of 2015.
Operating profit for the fiscal year increased 23% to a record $85.3 million, on sales of $1,179.2 million that increased 9% over last year. The year-over-year increase reflected top-line growth in all key geographic regions and includes an increase in branded activity, new businesses with strong global reach and expansion of its retail activity in Israel and Germany.
Full year net income was $51.9 million, or $2.03 per diluted share, compared to $43.8 million, or $1.71 per diluted share, in the previous year.
Isaac Dabah, CEO of Delta Galil, stated: “We are very pleased with our results for 2016, which concluded with a particularly strong fourth quarter and reflected all-time high sales, operating profit and cash flow. During the year, we made the successful acquisition of 7 For All Mankind, Splendid and Ella Moss, reflecting our strategic efforts to grow Delta Galil’s branded business and expand our global footprint. We’ve upgraded our digital platform and increased our ecommerce market share by selling to wholesale customers such as Amazon, Zalando, and Otto, while elevating sales on our proprietary Schiesser and Delta Israel websites. We also launched a new advanced digital platform for the 7 For All Mankind, Splendid and Ella Moss brands.”
For 2017, Delta expects its net sales to range between $1,330 million and $1,370 million, for net income to range from $50.0 million to $52.0 million and for diluted earnings per share to be in range of $1.95 and $2.02.
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