Seven For All Mankind’s Parent Company Braces for Coronavirus
Delta Galil might be the latest victim of the coronavirus.
The intimates and apparel manufacturer — which counts Seven For All Mankind, Splendid, Schiesser, Eminence, Delta, P.J. Salvage, Karen Neuburger, Nearly Nude and Fix among its brands — grew on both top and bottom lines during the most recent quarter.
But that wasn’t enough to tame investor fears.
Shares of Delta Galil fell 9 percent to 7,426 new shekels during Wednesday’s trading session in Tel Aviv. The company is expecting first-half losses between $5 million and $7 million on account of the coronavirus. The global company, which has approximately 90 employees in Mainland China, develops looks, conducts quality control checks and sources materials in the region. The Far East is also the center of the supply chain and where the majority of raw materials can be found.
Even so, Isaac Dabah, chief executive officer of Delta Galil, said he was pleased with the results.
“Our results were primarily driven by the strength of our Global Upper Market, Delta Israel and European Brands, coupled with our diverse blend of product categories and business segments,” Dabah said. “We continued to invest in our online sales growth engine, which presented a double-digit e-commerce growth. And, with a strong balance sheet, we have the necessary financial resources to continue to innovate and grow.”
In the most recent quarter, the company had $504.8 million in sales, an 11 percent increase from the same time last year when sales were just over $454 million. For the full year, sales increased 13 percent to $1.69 million, up from $1.49 million the year before.
Meanwhile, profits rose 44 percent in the most recent quarter to $35.6 million, up from $24.7 the prior year. For the full year, profits rose 20 percent to $57.7 million, up from $48.2 million.
Dabah said the Tel Aviv-based company plans to continue expanding globally. The details include investing more in Brayola, the New York City-based online bra business, which Delta Galil acquired earlier this year for more than $1 million. In addition, the company will expand The Bogart Group’s product assortment, the lingerie, swimwear and activewear manufacturer that Delta Galil acquired last year.
Supermodel Carolyn Murphy has also been made the face of Seven For All Mankind’s 20-year anniversary campaign.
“As always, we remain committed to investing in new products and resources to drive sustained profitable growth and long-term shareholder value,” Dabah said.
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