Delta Galil posts record Q1 sales, withdraws 2025 guidance amid tariff uncertainty

Intimates and apparel manufacturer and marketer Delta Galil reported on Thursday record first-quarter sales, driven by growth in all segments and channels.

For the quarter ended March 31, the Tel Aviv-based company posted an 11% year-over-year increase in sales to $498.7 million. Online sales of Delta Galil’s owned brands jumped 21% in the period.

Net income for the quarter surged 46% to $17.6 million, compared to $12 million in the same period last year. Diluted earnings per share rose 56% to $0.62, up from $0.39 a year ago.

Delta Galil develops and markets a wide range of apparel, including seamless bras, shapewear, socks, underwear, loungewear, babywear and activewear under brands such as Schiesser, Eminence, Organic Basics, Athena, P.J. Salvage and Delta. It also sells denim and apparel under 7 For All Mankind and women’s and children’s apparel under Splendid, in addition to licensed collections for adidas, Wolford, Wilson, Columbia, Tommy Hilfiger, Polo Ralph Lauren, and others.

“Delta delivered record first quarter sales, reflecting strong momentum across all segments and retail channels. Our top-line performance underscores our efforts to fuel the growth of our brands and partners through exceptional design and a relentless focus on innovation, quality and sustainability. This growth, combined with disciplined cost controls, yielded solid year-over-year gains in EBIT, EBITDA and net income,” said Isaac Dabah, CEO of Delta Galil.

Dabah also acknowledged challenges in the broader economic landscape, citing recent changes in U.S. trade policies as a source of uncertainty. As a result, the company has withdrawn its previously issued 2025 guidance.

The company estimates that the maximum impact on annual operating income from tariffs will not exceed $20 million and is targeting a $5 to $7 million reduction in annual operating expenses.

“While the macroeconomic environment has grown more complex amid evolving U.S. trade policies, our growth initiatives remain on track. We continue to see strong demand from key customers and are well positioned to gain market share due to our strategically located manufacturing facilities in countries with low tariff exposure.”