As companies across the fashion world take stock of a very tough year, Delta Galil is feeling pretty good and ending up with profits for the fourth quarter.
The company, which produces intimates, denim and others under a host of brands, including Seven For All Mankind, logged quarterly profits of $23.7 million, down 33 percent from a year earlier. Sales for the quarter ended Dec. 31 slipped 9 percent to $459.7 million.
That marked an improvement from earlier in the year. For all of 2020, the company logged a loss of $40.5 million on a 14 percent decline in sales to $1.4 billion.
“Without a doubt, 2020 represented an unprecedented year for Delta Galil, as COVID-19 forced us to rethink ways in which we conduct business,” said Isaac Dabah, chief executive officer of the Tel Aviv-based firm. “I am pleased with our agility to respond to the pandemic and implement the necessary initiatives to reduce costs and improve our operational and financial flexibility. Consequently, we saw record gross and [earnings before interest and tax] margins in the fourth quarter, and record operating cash flow for the year, demonstrating a strong combination of Delta’s rapid online expansion, coupled with the strength of our brands, loyal customer base, and the effects of our strategic efficiency measures, which we foresee continuing in the future.”
Delta Galil acquired online intimates brand Bare Necessities last year as part of an effort to boost its digital profile. It also staged an initial public offering of its Israeli subsidiary, Delta Israel Brands, raising $80 million.
More from WWD:
Who Won 2020? Retail Earnings Tell the COVID-19 Tale
Michelle Gass’ Master Plan at Kohl’s Starts to Click Into Place
ThredUp Vs. Poshmark Vs. RealReal on Wall Street
Source: Read Full Article