Delta Galil ended the third quarter of 2021 with a net profit attributable to shareholders of $ 34.5 million

Fashion company Delta Galil ended the third quarter of 2021 with a net profit attributable to shareholders of $ 34.5 million - an increase of 76% from $ 19.6 million in the third quarter of 2020. In response, the company’s stock fell 0.7% on the stock market.
Delta's sales grew 31% in the past quarter compared to the same quarter in 2020, totaling $ 501 million. Online sales at the company's sites in the third quarter grew 102% to $ 52.4 million, compared to the same period in 2020.
Excluding the acquisition of the online retail chain Bare Necessities in October 2020, online sales fell 8% in the third quarter of 2021 - but still showed 28% growth in the first nine months of the year compared to the same period last year. Isaac Debach, CEO of Delta Galil, said: "The strong performance in the third quarter represents a consistent trend of three consecutive quarters of sales records, four consecutive quarters of gross profit records, and a sequence of five quarters reflecting records in operating profitability."
Delta's gross profit in the third quarter of 2021 grew by 36% and amounted to NIS 198.5 million - about 39.6% of total sales. The company's operating profit increased by 58% to $ 53 million and its share amounted to 10.6% of total sales.
"The significant increase in profitability was driven by strong growth in sales in all sectors, in all marketing channels and geographical areas while improving the mix of product lines, customers and sales channels," said Debach. "We have also shown operational and financial improvements as a result of the streamlining measures we have taken over the past 15 months, the fruits of which are more likely to be felt next year."
Delta has raised its sales forecast for 2021 by 4% and expects them to be $ 1.94-1.9 billion - a sharp increase of 14% compared to the sales it introduced in 2019, which were $ 1.69 billion.
The annual operating profit, according to the Delta method, is expected to be $ 186-180 million - about 11% more than the previous forecast and 73% more than the operating profit that it presented in 2019, about $ 106 million. Delta also forecasts that its EBITDA (cash flow operating profit) in 2021 will be $ 286-280 million - about 7% more than the previous forecast and 45% more than in 2019.