Delta Galil Industries Ltd., an Israeli-based apparel company, announced a fourth-quarter net income of $37.8 million late Sunday. This figure comes in slightly higher than last year's profit of $37.7 million.
Despite the company's increased profit, earnings per share dropped from $1.35 to $1.31. Last year's adjusted earnings were recorded at $37.4 million or $1.34 per share.
In terms of Earnings Before Interest and Taxes (EBIT), the company pulled in $56.2 million, accounting for 11.0 percent of sales. This is only a slight decrease from $56.9 million or 10.5 percent of sales reported in the previous year.
There was a notable improvement in gross margin, which increased by 340 basis points to a record 43.1 percent for the company's fourth quarter.
However, overall sales experienced a drop of 7 percent, down from $544.4 million to $508.6 million. This was said to be a consequence of the ongoing deceleration in global consumer expenditure.
Online sales for the company's own brands saw a surge of 16 percent in the fourth quarter.
CEO of Delta Galil, Isaac Dabah, acknowledged the macroeconomic climate may remain challenging in 2024. However, he voiced his optimism about the company's prospects, citing the power of their brands, advanced manufacturing and design abilities, as well as their strong balance sheet and financial standing. He expects these would drive the company's year-over-year growth in revenue and profitability.
In terms of projections, the company anticipates a net income between $99.1 million and $114.7 million for fiscal 2024, an increase from last year's $91.6 million. Earnings per share are expected to range from $3.52 to $4.11, marking an improvement from the previous year's figure of $3.25.
As for sales, the company predicts they will fall between $1.95 billion and $2.03 billion, surpassing last year's total of $1.86 billion.
According to Delta Galil's predictions and order book, the majority of growth in 2024 is likely to occur during the second half of the year.
