Delta Galil Reports 4% Sales Growth to $2.12B, Gross Margin Hits 42.5%
Delta Galil generated record FY25 revenue of $2.12 billion, up 4% year-over-year, and achieved a 42.5% gross margin on $900.3 million gross profit, 60bps above 2024. However, EBIT excluding non-core items declined to $174.2 million and net income dipped to $93.7 million, yielding $3.21 EPS.
1. FY25 Financial Highlights
For the full year ended December 31, 2025, Delta Galil posted record revenue of $2.12 billion, a 4% increase over fiscal 2024, and gross profit rose 5% to $900.3 million with gross margin improving by 60 basis points to 42.5%. Despite these gains, EBIT excluding non-core items declined to $174.2 million and net income slipped to $93.7 million, translating to $3.21 in diluted EPS.
2. Q4 Performance
In the fourth quarter, revenue reached $611.1 million, up 2% year-over-year, while gross profit increased by 5% to $263.2 million and gross margin expanded by 140 basis points to 43.1%. However, EBIT excluding non-core items fell to $59.3 million and net income decreased to $28.0 million, resulting in $0.93 in diluted EPS.
3. Margin Expansion Drivers
Margin expansion was driven primarily by a higher mix of direct-to-consumer sales and improved factory efficiencies, supported by favorable currency movements. These benefits were partially offset by the impact of US tariffs, which added cost pressure.
4. Outlook and Investments
Management highlighted ongoing strategic investments in factories and distribution centres to enhance operational efficiency and capacity. They plan to leverage their global platform and expanded customer programs to sustain organic growth and improve profitability in the year ahead.