Organic Basics owner Delta Galil has lowered its full-year outlook amid “challenging economic conditions” despite reporting record sales and widening profits in the third quarter.
The Israeli company posted sales of 512 million dollars in the three months ended September 30, which was 2 percent higher than the 501.1 million dollars it made a year earlier.
Its net income came in at 36.1 million dollars, up from 32.5 million dollars a year ago.
Despite that, the company lowered its full-year outlook. It now expects sales of between 2.023 billion dollars and 2.03 billion dollars, down from its previous guidance of between 2.083 billion dollars and 2.09 billion dollars.
It expects net income of between 119 million dollars and 121 million dollars, down from its guidance of between 138 million dollars and 145 million dollars.
CEO Isaac Dabah hailed the third-quarter results that came despite “challenging economic conditions”.
He added that the company has already begun integrating Organic Basics, the Danish B-Corp brand it bought in July.
Delta Galil said it plans to grow Organic Basics globally and into new categories in the second quarter of 2023.