Delta Galil reports strong Q4 and full-year 2025 financial results

Caesarea, Israel-based apparel manufacturer Delta Galil Industries has reported strong financial results for the fourth quarter and full year ended December 31, 2025, demonstrating resilience despite a complex global retail landscape.

For the full year, sales climbed 4 percent to 2,118.9 million dollars, supported by fourth-quarter performance where revenue reached 611.1 million dollars. This growth was primarily driven by the company's direct-to-consumer (DTC) channels, with online sales for its owned brands—excluding Bare Necessities—surging 27 percent in the final quarter, marking 12 consecutive quarters of double-digit digital growth.

Full-year gross profit rose 5 percent to 900.3 million dollars. The company achieved an annual gross margin of 42.5 percent, an increase of 60 basis points from the prior year. In the fourth quarter, gross margin expanded by 140 basis points to 43.1 percent, a boost attributed to a more favorable mix of DTC sales and ongoing factory efficiency improvements, which helped mitigate the financial impact of US tariffs. However, higher selling, general, and administrative expenses—largely due to retail expansion—and tariff pressures led to a slight decrease in annual EBIT, which stood at 164.4 million dollars.

Chief executive officer Isaac Dabah described 2025 as an "outstanding year of execution," noting that the company successfully navigated geopolitical pressures and uneven demand trends.

Delta Galil ended the year with 135.8 million dollars in cash and record shareholders' equity of 903.6 million dollars. Bolstered by these results, the board declared a 10 million dollar dividend for the fourth quarter, payable on March 11, 2026.

Looking ahead to 2026, the group has issued optimistic guidance, targeting sales between 2,294 million and 2,328 million dollars and double-digit growth in profitability.