Delta Brands ended the third quarter with an increase of 12% in the quarter to NIS 210.8 million

Delta Brands, which operates the Delta and FIX lingerie chains, ended the third quarter with an increase in sales and profits. The company improved its gross and operating profitability rates and ended the quarter with a 40% increase in net profit.
The company's sales grew by 12% in the quarter to NIS 210.8 million - growth that resulted from an increase in all sales channels. Sales in the 187 Delta and FIX identical stores (branches that were active both in the third quarter of 2021 and in the corresponding quarter last year, used for comparison) rose in the quarter by 7.3% to NIS 157.9 million. This increase neutralizes the sales data during the period of the Wall Guard operation in May 2021.
The company, which specializes in marketing lingerie and leisure wear, showed stability in online sales of NIS 17.6 million in the quarter.
The company was able to improve its gross profit margin for the quarter to 61.1% compared to 59.1% in the corresponding quarter, following a change in the product mix and the introduction of items whose profitability is higher, as well as due to the strengthening of the shekel against the dollar. Gross profit for the quarter rose by 16% to NIS 128.8 million. After Corona received a reduction in rent and wages, and its expenses decreased during the closure period, in the current quarter, selling and marketing expenses increased by 9% and amounted to NIS 84.8 million.
Operating profit, which was affected by the increase in sales and gross profit but was also offset by an increase in expenses, rose by 31% in the third quarter to NIS 38 million. Delta Brands ended the quarter with a net profit of NIS 28 million, compared with NIS 20 million in the corresponding quarter.
In July 2022 Delta will launch a new sports brand and open seven stores and a dedicated website. The company is in the stages of developing the collection and a branding process. It also signed with Disney on the renewal of the franchise agreement to manufacture clothing with the Disney trademarks by the end of December 2024. The company is expected to launch in the coming years an automatic log on an area of ​​17,000 square meters.