Sales for the quarter ended March 31, 2026, rose 15 per cent year-on-year (YoY) to Q1 record of $573 million. In constant currency terms, sales increased 10 per cent.
Delta Galil Industries has reported record Q1 2026 sales of $573 million, up 15 per cent YoY, with gross profit rising 18 per cent to $238.8 million.
The gross margin improved to 41.7 per cent, supported by factory efficiency and favourable exchange rates.
EBIT also reached a Q1 record, while the company reaffirmed its full-year 2026 guidance.
“2026 is off to a strong start, reflecting the strength of Delta Galil’s global platform, the value of our brands, and our team’s ability to execute at a high level in a dynamic environment. We grew our sales across all segments, delivered record first quarter sales, gross profit, EBIT, EBITDA and operating cash flow,” said Isaac Dabah, CEO of Delta Galil.
Gross margin improves on factory efficiency
The gross profit expanded 18 per cent YoY to a first quarter (Q1) record of $238.8 million, compared with $202.6 million in Q1 2025. Gross margin improved by 110 basis points to 41.7 per cent from 40.6 per cent a year earlier, mainly due to improved factory efficiency and favourable exchange rates.
EBIT, excluding non-core items, reached a first-quarter record of $36.6 million, compared with $32.7 million in the prior-year quarter. Reported EBIT also rose to a first-quarter record of $35.1 million from $32.7 million. The increase was supported by higher sales and continued factory efficiency gains, partly offset by higher selling, general and administrative expenses (SG&A) expenses, logistics costs, exchange-rate effects, and investments in business expansion, Delta Galil said in a press release.
The net income excluding non-core items, net of tax, remained unchanged at $17.6 million. Reported net income declined to $16.4 million from $17.6 million in Q1 2025. Diluted earnings per share (EPS) excluding non-core items stood at $0.63, compared with $0.62 a year earlier, while reported diluted EPS was $0.59, down from $0.62.
The company also reported record first-quarter cash flow from operating activities, excluding IFRS 16, of $27.9 million, compared with $4 million in the same period last year.
“These results were driven by higher US sales to our established and growing customer base, expansion of our owned brands due to continued product innovation, and the benefits of our strategic investments in global sourcing, production, and distribution capabilities,” added Dabah.
He said the company was encouraged by the positive momentum across the business, particularly as investments in innovation, manufacturing flexibility and customer partnerships continued to deliver measurable results. He further said that the company remained focused on disciplined execution, supporting evolving customer and consumer needs, and leveraging its global platform to capture profitable growth opportunities in 2026 and beyond.
FY26 outlook remains strong
Delta Galil reaffirmed its full 2026 guidance, excluding non-core items. The company expects sales of $2.294 billion to $2.328 billion, compared with $2.1189 billion in 2025. EBIT is projected at $204 million to $212 million, while EBITDA is expected to range between $324 million and $332 million. Net income is forecast at $116 million to $123 million, with diluted EPS expected between $4 and $4.23.
Fibre2Fashion News Desk (SG)
