Delta Galil, a manufacturer of intimate apparel, underwear, loungewear, activewear, sleepwear, shapewear and socks, reported second-quarter financial results showing substantial year-over-year growth. The company supplies products to major retail and brand partners including Nike, Victoria’s Secret, Lululemon, Skims, and Walmart.
Revenue for the period reached $511.6m, representing a 9% increase from $470.1m in the same quarter a year prior. Gross profit expanded by 26%, while earnings before interest and taxes climbed to $54.6m compared to $31m in the prior-year quarter. Net income for the period totaled $34.4m, up significantly from $16.7m a year earlier.
The company attributed a portion of its improved profitability to the receipt of tariff refunds related to IEEPA determinations. Excluding these refund benefits, Delta Galil reported record second-quarter sales and achieved a gross margin of 45.2%, described as an all-time record for the company.
CEO Isaac Dabah characterized the quarter as demonstrating broad-based progress across the business and noted that the company achieved double-digit growth in profitability indicators beyond the tariff refund impact. He indicated that Delta Galil intends to allocate a portion of tariff refund proceeds toward strategic investments in manufacturing capabilities, supply chain infrastructure, and overall organizational structure to support future expansion.
Dabah stated that year-to-date results reflected the effectiveness of the company’s growth initiatives, including investments in product innovation, owned brands, manufacturing flexibility, global sourcing, and distribution infrastructure. He noted that net debt levels had declined compared to the prior year and expressed confidence in the company’s ability to deliver sustained profitable growth through the remainder of 2026 and beyond.
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