The gross margin for the full year increased by 100-basis points (bps) to a record 41.9 per cent, compared to 40.9 per cent in the prior-year period. The gross margin increased primarily due to higher volume production in the company’s factories due to an increase in private label segment sales, and an increase in more profitable direct-to-customer (DTC) sales, partially offset by higher freight costs, Delta Galil said in a press statement.
Delta Galil has reported sales of $2,045.7 million in 2024, up 10 per cent YoY, with gross profit at $856.3 million.
Gross margin rose to 41.9 per cent due to higher private label and DTC sales.
EBIT reached $169.2 million, and net income grew 11 per cent to $94.6 million.
Q4 sales rose 18 per cent to $599.2 million.
For 2025, sales are forecast at $2,118-$2,165 million, with EPS at $3.92-$4.15.
Earnings before interest and taxes (EBIT) in the full year 2024 was $169.2 million, compared to $144.9 million in 2023. The YoY increase in annual EBIT was due to higher sales and improved gross margin. The net income in the full year 2024 increased by 11 per cent YoY to $94.6 million, compared to $85.3 million in 2023. Diluted earnings per share (EPS) in full year 2024 were $3.29 compared to $3.02 in 2023.
Fourth quarter (Q4) financial
In the fourth quarter (Q4) of 2024, the company achieved an increase of 18 per cent YoY in sales, reaching $599.2 million, driven by growth across all segments, channels, and geographies. The online sales saw a 22 per cent increase in Q4. The company’s gross margin improved by 100 basis points, reaching an annual record of 41.9 per cent.
The gross profit in Q4 amounted to $250.1 million compared to $219.1 million in the same quarter last year. The gross margin in Q4 2024 was 41.7 per cent compared to 43.1 per cent for the same period last year.
EBIT in the fourth quarter of 2024 was $53.1 million, compared to $56.2 million in Q4 last year. The net income in Q4 2024 was $29.5 million, compared to $37.8 million in the same period last year. Diluted EPS in Q4 2024 stood at $1.00, compared to $1.31 in Q4 last year.
Outlook
For the full fiscal 2025, the company expects sales to be in the range of $2,118 million to $2,165 million, reflecting a projected increase of 4 per cent to 6 per cent YoY. EBIT is forecast to rise by 4 per cent to 9 per cent, reaching $192 million to $200 million.
EBITDA is expected to grow by 5 per cent to 8 per cent, ranging between $293 million and $301 million. The net income is anticipated to increase by 4 per cent to 9 per cent, reaching $112 million to $118 million. Diluted EPS is projected to be between $3.92 and $4.15, representing a growth of 3 per cent to 9 per cent.
Fibre2Fashion News Desk (SG)
