Delta Galil Industries, Ltd. reported a sales decrease of 10 percent or 9 percent in constant currency to 443.6 million dollars, driven by the macro slowdown in global consumer spending.

The company’s first-half sales were 886 million dollars, a 9 percent decrease or 8 percent in constant currency.

For the full year, the company expects net sales to decrease to 2,000 million dollars, EBIT to increase to 192 million dollars, EBITDA to reach 285.7 million dollars, increase in net income to 120.9 million dollars and diluted earnings per share to reach 4.27 dollars.

Delta Galil’s board has declared a dividend of 7 million dollars or 0.272 cents per share, which will be distributed on August 30, 2023.

Commenting on the trading update, Isaac Dabah, CEO of Delta Galil, stated in a release: “During the quarter, most of our owned brands increased direct sales across both e-commerce and brick and mortar retail channels. Additionally, we managed to achieve a strong second quarter gross margin despite a heavily promotional retail landscape, while simultaneously reducing our inventory for the third consecutive quarter. Finally, we announced another measure to streamline our operations by reducing our operational footprint in China.”

The company’s second quarter gross margin improved 190 basis points to 40.4 percent, EBIT was 30.9 million dollars or 7 percent of sales compared to last year at 44 million dollars or 9 percent of sales, EBITDA was 38 million dollars, a 27.1 percent decrease from last year and a 33.3 percent increase from the first quarter of 2023. Second quarter net income was 15.1 million dollars compared to 22.7 million dollars and diluted earnings per share were 53 cents compared to 80 cents in the second quarter of 2022.

Gross margin in the first half increased by 150 basis points to 39.7 percent, EBIT was 42.7 million dollars compared to 72.7 million dollars in the same period last year, net income was 18.1 million dollars compared to 41.6 million dollars and diluted earnings per share were 61 cents compared to 1.47 dollars in the same period last year. In the first half of 2023, EBITDA was 66.5 million dollars compared to 94.7 million dollars in the first half of 2022.