Delta Galil reports record third quarter sales and profit growth

Israeli apparel manufacturer Delta Galil Industries (DELG) has reported record third quarter sales of 599.6 million dollars for the three months ended September 30, 2026, representing an increase of 11 percent year-over-year, or 9 percent in constant currency.

Gross profit expanded 15 percent to 267.9 million dollars, lifting gross margin by 140 basis points to 44.7 percent. This improvement was driven primarily by higher direct-to-consumer (D2C) sales and favourable exchange rates between the Israeli new shekel and the dollar, partially offset by sales mix and increased customer promotions.

Operating profit, or EBIT, excluding non-core items rose 23 percent to 63.1 million dollars, while reported EBIT increased 19 percent to 58.8 million dollars. Net income excluding non-core items climbed 23 percent to 40.2 million dollars, and reported net income grew 17 percent to 36.6 million dollars.

“We delivered another strong quarter, achieving record third-quarter sales and double-digit growth across all major profitability measures,” said Delta Galil chief executive officer, Isaac Dabah, in a statement. “In addition, our direct-to-consumer sales increased in the third quarter of 2026 by 16 percent compared to the third quarter last year demonstrating the strength of our owned brands.”

Nine-month performance and full-year guidance

For the first nine months of 2026, Delta Galil recorded sales of 1.68 billion dollars, up 12 percent compared to 1.51 billion dollars in the prior-year period. Nine-month gross profit increased 19 percent to 759.8 million dollars, with gross margin rising 290 basis points to 45.1 percent, supported by an 18.6 million dollar tariff refund.

EBIT excluding non-core items for the nine-month period rose 34 percent to 154.3 million dollars, while net income excluding non-core items increased 37 percent to 92.2 million dollars. Diluted earnings per share (EPS) excluding non-core items reached 3.30 dollars, up from 2.33 dollars in the same period last year.

The board declared a third quarter dividend of 10 million dollars, up from eight million dollars a year earlier.

Looking ahead, Delta Galil expects full-year 2026 results to land at the middle to high end of its guidance range, excluding non-core items and the tariff refund. Full-year sales are projected between 2.29 billion dollars and 2.33 billion dollars, while EBIT is forecast between 204 million dollars and 212 million dollars, and net income between 116 million dollars and 123 million dollars and diluted EPS between 4 dollars to 4.23 dollars.

Delta Galil is a global apparel manufacturer that supplies major wholesale partners, including Nike, Victoria’s Secret, Lululemon, Skims, and Walmart. Alongside its core manufacturing business, the company manages a diverse portfolio of proprietary brands—such as Delta, Schiesser, Eminence, Athena, Splendid, and PJ Salvage—and produces licensed lines for Adidas, Columbia, Calvin Klein, and Tommy Hilfiger. The company also designs, develops, and markets premium denim under its Seven for All Mankind label.