Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q1 2025 Earnings Presentation
18 slides from Delta Galil Industries's earnings presentation, May 2025
Slide 1: Q1-2025 Results
Q1-2025 RESULTS MAY 2025 Q1 - 2025 RESULTS . MAY 2025
Slide 2: Q1 - 2025 RESULTS
מצגת זו אינה מהווה ואין לפרשה כהצעה או הזמנה לרכישה ו/או הקצאת ניירות ערך של דלתא גליל תעשיות בע"מ ("החברה") .מצגת זו אינה מתיימרת לכלול את כל המידע העשוי להיות רלוונטי לצורך קבלת החלטה כלשהי בנוגע להשקעה בניירות הערך של החברה ובכלל .האמור במצגת הינו תמצית בלבד ואינו ממצה את מלוא הנתונים או
Slide 3: Q1-2025 Main Achievements
Q1-2025 MAIN ACHIEVEMENTS $498.7M $32.7M $202.6M +11% +11% 40.6% Record Q1 Sales EBIT 1 Record Q1 Gross Profit +21% +9% $17.6M DTC +22% Owned Website Sales2 9 consecutive QTRs of double-digit growth Retail & Digital Net Income1 Q1 - 2025 RESULTS Note: 1 Before One – Time Items; 2 Excluding Bare Nece
Slide 4: Q1-2025 Segment Highlights
Q1-2025 SEGMENT HIGHLIGHTS Delivered 5 consecutive quarters of year-over-year growth – PRIVATE LABEL Q1 set new records for sales, gross profit and EBIT, driven by continued momentum BRANDS Record sales (+11% YOY) and record gross profit for Q1 7 FOR ALL Continues to deliver strong momentum, driving
Slide 5: Q1-2025 RESULTS
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Slide 6: Q1-2025 Results
Q1-2025 RESULTS SALES EBIT 1 +11% +11% $498.7M $32.7M GROSS PROFIT EBIT MARGIN 1 +6% $202.6M +10 BPS 6.6% GROSS MARGIN EBITDA 2 -170 BPS +7% 40.6% $40.5M DIVIDEND NET PROFIT 1 SAME +22% $17.6 $8.0M Q1 - 2025 RESULTS Quarterly Record 6 Note: 1 Before One – Time Items; 2 Excluding IFRS-16 Impact
Slide 7: Gross Margin and EBIT Margin Bridges
GROSS MARGIN AND EBIT MARGIN BRIDGES Q1-2024 Gross Margin 42.3% Var Q1-2024 EBIT Margin 6.5% Var FX Impact SG&A Freight Rate Increase SG&A Leverage Reduction in Export Subsidies in Egypt Cost Savings Operational Efficiencies Q1-2025 Gross Margin 40.6% -1.7% Q1-2025 EBIT Margin 6.6% 0.1% Q1 - 2025 RE
Slide 8: Q1-2025 Segments Results
Q1-2025 SEGMENTS RESULTS 8
Slide 9: Strong Sales Growth Across Our Diversified Portfolio
STRONG SALES GROWTH ACROSS OUR DIVERSIFIED PORTFOLIO SALES EBIT 1 EBIT % 1 ($ in millions) Q1 2025 Q1 2024 Var Var % Q1 2025 Q1 2024 Var Var % Q1 2025 Q1 2024 Var Private Label 206.4 186.8 19.6 11% 24.1 22.4 1.7 8% 11.7% 12.0% -0.3% Brands 150.6 135.2 15.4 11% 0.1 2.5 -2.4 -97% 0.1% 1.8% -1.8% Delta
Slide 10: Private Label
PRIVATE LABEL Delivered Record Q1 Sales and Gross Profit — 5th consecutive quarter of year-over-year growth SALES ($M) EBIT ($M) • Maximizing utilization of owned manufacturing assets $206.4 $24.1 amid accelerated shift out of $186.8 $22.4 China • Doubling Egypt footprint over the next 3 years to su
Slide 11: Brands
BRANDS Record Q1 Sales and Gross Profit SALES ($M) EBIT ($M) $150.6 $2.5 • EBIT for Q1-2025 reached $2.1M $135.2 on a constant currency basis • Delivered strong double-digit Adidas growth • Locked in Florence By Mills rollout across 700 doors with key $0.1 retail partner for Spring 2026 launch • Imp
Slide 12: Delta Israel
DELTA ISRAEL Strong Owned Brand Performance & Successful New Brand Launches SALES ($M) EBIT ($M) • Rolled out unified loyalty $87.3 program across 5 brands, $11.7 $11.8 now reaching 1.4M members $70.9 • Doubling franchised brand store footprint in Israel (VS & BBW) in the next year • BBW Germany fra
Slide 13: 7 For All Mankind
7 FOR ALL MANKIND Record Q1 Gross Profit and Margin SALES ($M) EBIT ($M) • Continued growth in innovative RTW and denim $50.2 collections $48.0 $2.0 • Margin improvement driven by global sourcing and organizational streamlining • Shift toward wide-leg trend boosting bottoms category and driving new
Slide 14: Others
OTHERS Focused On Achieving Breakeven By End of 2025 SALES ($M) EBIT ($M) ORGANIC BASICS Q1 - 2024 Q1 - 2025 • Global expansion underway - sales up 96% YoY 17.5 BARE NECESSITIES -3.3 • Prioritizing gross margin 12.4 expansion and disciplined cost reduction • Upgraded platform driving improved custom
Slide 15: Strong Financial Position
STRONG FINANCIAL POSITION ($M) Mar. 31, 2025 Mar. 31, 2024 Cash Portfolio $91.9 $189.2 $91.9M $817.7M Inventory $458.1 $394.3 Cash Balance1 Record Equity Other Current Assets $273.9 $258.1 Current Assets $823.9 $841.6 Non-Current Assets $1,075.7 $978.2 $160.2M $27.2M TOTAL ASSETS $1,899.6 $1,819.8 N
Slide 16: U.S. Tariff Update: Navigating a Fluid Landscape
U.S. Tariff Update: Navigating a Fluid Landscape KEY STATISTICS 1 STRATEGIC RESPONSE 6% United States • Collaborating with vendors/customers to 16% share cost impacts ~30% 52% Europe Israel of our revenue is currently Rest of World • Relying on our global network of exposed to U.S. tariff impact 26%
Slide 17: 2025 Future Outlook
2025 Future Outlook Egypt platform positions us Retail prices likely to rise in H2 Accelerating expense to gain market share due to 2025 as tariff-related costs reduction plan to unlock low tariff rates flow through the supply chain $5M - $7M in cost savings • Previous guidance issued in the 2024 An
Slide 18: Thank You
THANK YOU Q1 - 2025 RESULTS 18
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