Delta Galil achieves Q1 sales growth of 15 percent driven by US market

Israeli apparel manufacturer Delta Galil Industries has announced strong financial results for the first quarter ended March 31, 2026. The group, which produces intimate apparel, activewear, loungewear, and denim, saw sales growth across all business segments and geographic regions.

Record revenue driven by US market expansion

First quarter sales rose 15 percent to 573 million dollars, compared to 498.70 million dollars in the same period of 2025. In constant currency, revenue increased by 10 percent year-over-year (YoY). The growth was primarily attributed to higher sales in the US market and the expansion of owned brands, supported by strategic investments in global sourcing and distribution.

Gross profit for the period reached 238.80 million dollars, representing an 18 percent increase compared to 202.60 million dollars in the first quarter of last year. This resulted in a gross margin of 41.7 percent, a rise of 110 basis points from 40.6 percent. Management cited improved factory efficiency and favourable exchange rates as the primary drivers for the margin expansion.

Operating profit and net income performance Earnings before interest and taxes (EBIT), excluding non-core items, reached 36.60 million dollars, up from 32.70 million dollars in the prior year.

Net income excluding non-core items remained stable at 17.60 million dollars. However, net income including non-core items was 16.40 million dollars, a slight decrease from 17.60 million dollars in the first quarter of 2025. Diluted earnings per share, excluding non-core items, arrived at 0.63 dollars, compared to 0.62 dollars in the previous year.

Strategic outlook and 2026 guidance

Delta Galil chief executive officer, Isaac Dabah, expressed confidence in the current trajectory of the group. “2026 is off to a strong start, reflecting the strength of Delta Galil’s global platform, the value of our brands, and our team’s ability to execute at a high level in a dynamic environment,” Dabah stated. He noted that investments in manufacturing flexibility and innovation are translating into measurable financial results.

The group maintains a robust balance sheet with 123.90 million dollars in cash and record shareholders’ equity of 906.80 million dollars. Consequently, the board has declared a dividend of 8 million dollars for the first quarter of 2026, matching the distribution from the previous year.

Based on the strong start to the year, the company reaffirmed its full year 2026 guidance and expects annual sales to range between 2.29 billion dollars and 2.33 billion dollars, compared to 2.12 billion dollars in 2025. Full year EBIT is projected to reach between 204 million dollars and 212 million dollars.