Delta Israel's Internet sales fell by 58% in the first quarter of the year and amounted to NIS 27.5 million

Delta Israel's Internet sales fell by 58% in the first quarter of the year and amounted to NIS 27.5 million. The company's total sales decreased to 12.8% compared to 33.7% in the first quarter of 2021. With the exception of online, Delta's other sales channels grew and the company showed an 11% increase in revenue for the quarter, which amounted to NIS 214.5 million.
Delta chose to present the total sales volume in the same stores compared to the first quarter of 2019, in order to neutralize the effect of the closures that were in the first quarter of 2020 and 2021. Sales in the identity stores of the Delta and Pix chains increased by 20.8% to NIS 143 million.
The increase in sales in the company's stores and wholesale channel contributed to a 3% increase in gross profit in the quarter and stood at NIS 118.4 million, but shipping costs and unusual weather impact in the first quarter hit the gross profit margin down to 55.2% compared to 59.5% in the same quarter last year. The negative effects were partially offset by the strengthening of the shekel against the dollar.
Selling and marketing expenses increased by 19% in light of store openings, wages and wages and commissions that Delta paid to franchisees and which were saved from it in the corresponding quarter last year. The increase in selling and marketing expenses in addition to the decrease in gross profit led to a 24% decrease in Delta's operating profit and amounted to approximately NIS 30 million. Its share of revenue decreased to 13.9% compared to about 20.3% in the first quarter last year.
Disruptions in the world supply chain led Delta to decide to stockpile large quantities of goods, compared to the same quarter last year, and the company's inventory, as of March 2022, increased to NIS 210 million compared to NIS 133 million in March 2021.
Delta closed the first quarter with a 25% decrease in net profit to NIS 19 million, the decrease was due to a 23% decrease in profit before taxes.
In January, Delta Israel launched the sports brand Panta Rei and plans to open 3 more stores by the end of the year. There are currently three brand stores in Azrieli Tel Aviv, Ir Yamim Mall in Netanya and the Grand Canyon Haifa, as well as an online site. The company announced a dividend of NIS 9.5 million.