Delta Galil Industries, the Israel-based manufacturer of branded and private label apparel products, has announced its second-quarter (Q2) FY20 financial result to June 30, 2020. Sales during the quarter grew 27 percent to $270.9 million (Q2 FY19: $373.9 million). However, the company’s own website sales jumped 163 percent during the quarter.
“While our second-quarter results reflect the continued global impact of the Covid-19 pandemic, we are pleased to report that our financials were better than we expected as of last quarter. We finished Q2 with a strong performance in direct-to-consumer e-commerce across all of our businesses, and we see a strong recovery in brick-and-mortar sales in Israel, that presented growth in May and June, and in our European brands,” Isaac Dabah, CEO of Delta Galil, said.
But the company incurred a net loss of $53.3 million, including the restructuring charge noted, compared to net income of $5.1 million in Q2 FY19. Operating loss for the second quarter was $55.4 million compared to operating profit of $14.3 million in Q2 FY19.
“During the quarter, we initiated a significant strategic restructuring plan across all business units, which we expect to deliver efficiencies in our cost structure, operations and productivity starting already in Q3,” Dabah said. “We started the third quarter with strong results for July and expect to get back to profitability in the third quarter.”