Seamless wear specialist Delta Galil says it will look to roll-out its recently acquired Organic Basics brand across its global markets in 2023.
Reporting record sales of $512.0 mn for its third quarter, up 2 percent compared to the same period last year, the company said it plans to extend the Organic Basics product line to include items for babies and kids as well as additional items for women and men as it takes the brand to consumers worldwide.
Founded in Denmark by three young entrepreneurs in 2015, the digitally native brand is known for its sustainably, ethically made women’s and men’s underwear, activewear and base layers.
“We are pleased to report another quarter of record sales and EBIT —particularly given current challenging economic conditions,” said
Isaac Dabah, CEO of Delta Galil. “Demonstrating the continued strength of our diversified business model, our results were driven by sales growth in constant currency in the Private Label, 7 For All Mankind and Delta Israel segments, while sales in our Brands segment and Other – which mainly includes the results of Bare Necessities – were negatively impacted by global demand headwinds, changes in foreign currency exchange rates, and inflation pressures.”
EBIT in the third quarter increased 4 per cent to $55.1 mn, from $53.0 mn last year and was up 4 percent to $127.8 mn in the first nine months. Net income increased 11 per cent to $36.1 mn, from $32.5 mn.
“Importantly, during the quarter we remained focused on delivering our core value proposition to our customers and shareholders,” Dabah added. “We already began integrating recently-acquired sustainable underwear brand Organic Basics and we plan to grow the business globally and into new categories in the second quarter of 2023. We continue to strengthen our digital expertise, while we strategically expand our businesses in order to best position us to develop the most innovative, high-quality products for our customers worldwide.
“As the retail industry continues to face a difficult economic environment, we believe that Delta Galil’s strong value proposition, diversified business model and reputation for innovation will enable us to successfully navigate challenging market conditions.”
