Delta Galil Industries TASE:DELT Stock Report

Delta Galil Industries Ltd. Reaffirms Earnings Guidance for the Full Year 2022

First quarter 2022 earnings released: EPS: US$0.67 (vs US$0.57 in 1Q 2021)

First quarter 2022 results: EPS: US$0.67 (up from US$0.57 in 1Q 2021). Revenue: US$483.9m (up 16% from 1Q 2021). Net income: US$17.7m (up 22% from 1Q 2021). Profit margin: 3.7% (up from 3.5% in 1Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth.

adidas and Delta Galil Introduce Full-Range Underwear Collections for All

adidas and Delta Galil Industries Ltd. announced the arrival of full-range underwear collections for adidas Originals and Badge of Sport. adidas underwear is about comfort at the core, and the Spring/Summer 2022 collections are designed to support all forms of movement and expression by using super soft cotton and high-tech stretch fabrics to empower all bodies to realize their full potential. The value of comfort continues to grow unilaterally across all generations. How consumers feel as they move through their day matters now more than ever, and adidas, together with Delta Galil, are speaking to that collective rising-of-consciousness through intentional design and production. The new adidas underwear collections offer a wide range of underwear separates including thongs, bikinis, briefs, trunks and boxer shorts, plus an assortment of versatile bralettes, bramis, tank tops, body suits and t-shirts. Inclusive Sizes range from XS through 3XL. Product prices range from USD 15 - USD 48 (approximately EUR 13 – EUR 60). Key fabrics include: adicolor Comfort Flex Cotton incorporates Delta Galil’s Realasting™ technology to maintain fabrics feel and shape after repeated washes, Use of Tencel™ cotton makes the innerwear extra soft and breathable, 720° Stretch ensures an individualized flex fit for every body, Innoband™ Tech – offers invisible coverage plus an ergonomic fit, Refibra™cotton – delivers premium natural fibers via upcycled cotton, Various products utilize recycled and dye-free yarn, and Real Cool Cotton™ - quick dry and moisture-wicking. Launching for Spring/Summer 22, the men’s collections will debut across the APAC, EMEA, Europe and Latin America regions, with the women’s collections launching in the same regions as well as North America. The adidas Originals and Badge of Sport underwear collections are shoppable now in-store and with select online retailers globally, including DTLR, Nordstrom, Amazon, and Zalando, and coming soon to adidas.com.

Less than half of directors are independent

No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. 5 highly experienced directors. 4 independent directors (5 non-independent directors). Independent External Director Shuki Gold was the last independent director to join the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment.

Full year 2021 earnings: Revenues and EPS in line with analyst expectations

Full year 2021 results: EPS: US$4.29 (up from US$1.56 loss in FY 2020). Revenue: US$1.95b (up 35% from FY 2020). Net income: US$112.8m (up US$152.6m from FY 2020). Profit margin: 5.8% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth.