en.Wedoany.com Reported - Israeli underwear and activewear manufacturer Delta Galil announced its first-quarter 2026 results, with sales increasing 15% year-over-year to $573 million, primarily driven by sales growth in the U.S. market. For the quarter ended March 31, the company achieved a gross profit of $238.8 million, up 18% year-over-year, with gross margin improving to 41.7% from 40.6% in the same period last year. The improvement was attributed to enhanced operational efficiency at manufacturing facilities and a favorable exchange rate environment.

Earnings before interest and taxes (EBIT), excluding one-time items, reached a record $36.6 million, up from $32.7 million last year; including non-core items, EBIT was $35.1 million. The company stated that higher sales and improved operational efficiency were the main drivers of EBIT growth, partially offset by increased selling and administrative expenses, higher logistics costs, and investments in business expansion. Net profit (excluding non-core items and after taxes) remained flat at $17.6 million compared to the prior year; diluted earnings per share were $0.63, slightly higher than $0.62 in 2025.

Delta Galil CEO Isaac Dabah stated in a release: "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." He added that all business segments achieved sales growth, with first-quarter sales, gross profit, EBIT, EBITDA, and operating cash flow all reaching record highs. "These results were driven by increased U.S. sales to our existing and growing customer base, ongoing product innovation fueling the expansion of our own brands, and our strategic investments in global sourcing, manufacturing, and distribution capabilities."

Looking ahead to full-year 2026, Delta Galil maintained its previous guidance: full-year sales are expected to be between $2.29 billion and $2.33 billion, EBIT between $204 million and $212 million, net profit expected between $116 million and $123 million, and diluted earnings per share projected between $4.00 and $4.23. Isaac Dabah emphasized: "I am encouraged by the positive momentum across the business, particularly as investments in innovation, manufacturing flexibility, and customer collaboration continue to translate into measurable results. We remain focused on disciplined execution, supporting the evolving needs of our customers and consumers, and leveraging the strengths of our global platform to capture profitable growth opportunities in 2026 and beyond."

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