Fashion
Israel’s Delta Galil posts record Q1 sales on broad-based growth
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)
On the Transpacific trade route, rates surged this week due to the implementation of Emergency Fuel Surcharges (EFS) and Peak Season Surcharges (PSS) by carriers. Freight rates from Shanghai to New York increased 14 per cent to $4,252 per 40-foot container, and those from Shanghai to Los Angeles rose 10 per cent to $3,357 per 40-foot container.
Drewry’s World Container Index rose 11.67 per cent to $2,553 per FEU in the week ending May 14, driven by higher freight rates on Transpacific and Asia–Europe routes.
Emergency fuel and peak-season surcharges, capacity cuts, blank sailings, and geopolitical tensions in the Middle East supported the rally, with rates expected to rise further in the coming weeks.
According to Drewry’s Container Capacity Insight, seven blank sailings have been announced on the Transpacific trade route for the next week, as carriers continue to manage capacity. In addition, Yang Ming Line announced a GRI of $2,000 per 40-foot container effective 15 May. Drewry expects rates to increase further in the coming week.
On the Asia–Europe trade route, spot rates also increased this week due to FAK, along with capacity cuts announced by carriers in May. Rates from Shanghai to Genoa increased 20 per cent to $3,701 per 40-foot container, and those from Shanghai to Rotterdam jumped 11 per cent to $2,413 per 40-foot container. The Asia-Europe peak season is expected to start earlier than usual as higher cargo bookings, tight vessel space, and disruptions linked to the US/Israel-Iran conflict are prompting shippers to move cargo earlier. As demand is rebounding, Drewry expects rates to increase further in the coming week
Freight rates from New York to Rotterdam increased 1 per cent to $1,030 per FEU, while Rotterdam to New York decreased 3 per cent to $2,388 per FEU. Rotterdam-Shanghai rose 2 per cent to $644 per FEU, and Los Angeles–Shanghai steadied at $791 per 40-foot container.
Middle East tensions around the Strait of Hormuz and the Red Sea remain under close watch, with carriers staying cautious on routing and operations amid ongoing US/Israel-Iran conflict concerns. Meanwhile, higher bunker prices and tight vessel space continue to support freight rates. Carriers are also actively adjusting pricing through EFS, PSS, GRI and firmer FAK levels, alongside blank sailings, and flexible capacity management strategies, keeping the market firm despite relatively stable vessel movement.
Fibre2Fashion News Desk (KUL)
The Luzon Economic Corridor, announced in April 2024 as the first Partnership for Global Infrastructure and Investment (PGI) corridor in the Indo-Pacific, enhances connectivity between Subic Bay, Clark, Manila and Batangas.
Through coordinated investments in transport infrastructure, energy systems, digital connectivity and advanced manufacturing supply chains, the LEC will create thousands of high-quality jobs and transform Luzon into a more prosperous and interconnected region, a release from the US embassy in the Philippines said.
The US, the Philippines and Japan have announced the expansion of the Luzon Economic Corridor partnership to include Australia, Denmark, France, Italy, South Korea, Sweden and the UK.
Through coordinated investments in transport infrastructure, energy systems, digital connectivity and advanced manufacturing supply chains, the corridor will transform Luzon into a more prosperous and interconnected region.
“The expansion of the LEC partnership demonstrates the power of collaboration among likeminded nations committed to transparency and shared prosperity,” said Philippine secretary of finance Frederick D. Go, co-chair of the LEC steering committee.
“Together, we are building infrastructure that will improve daily life for millions of Filipinos and create new opportunities for businesses, industries, and communities in our partner countries and across the region,” he said.
LEC partners share a commitment to a free and open Indo-Pacific and pledge to promote fair and transparent economic development. Partners will contribute through technical assistance, financing, and facilitation of private sector investments, while actively participating in working groups focused on transport, energy and digital infrastructure.
Australia is mobilising investment in the LEC through Australia’s Manila Deal Team, reinforced by technical assistance under the Partnerships for Infrastructure programme and a new $32.6-million partnership with the Philippines on inclusive economic growth.
Denmark is contributing to the LEC by revitalising Philippine shipbuilding, advancing green maritime innovation and fostering investments, jobs and sustainable industrial development. Working with the government and the private sector, Denmark’s shipbuilding initiative aims at creating 10,000 jobs.
France is strengthening connectivity in the LEC by financing 100 bridges through official development assistance, and industrial capacity building through a foreign direct investment project in the aeronautics sector.
Italy is contributing to the development of quality, resilient and sustainable infrastructure by increasing its public financial support to facilitate private sector investment from Italian companies in the transport, semiconductors and manufacturing sectors.
South Korea is contributing to enhanced transport and digital connectivity, and sustained economic growth along the LEC, through official development assistance and public-private partnership initiatives, including a $25.6-million grant to establish the National Cyber Security Centre and the Ninoy Aquino International Airport modernisation PPP project.
Sweden is contributing to Luzon’s Subic-Clark-Manila-Batangas freight railway through a $1.2-million grant to fund a feasibility study on signalling systems and operational models.
The United Kingdom is deploying its full Growth and Investment Partnerships (GIP+) toolkit in the LEC, providing technical assistance, $6.8 billion in export finance and mobilising capital towards infrastructure and energy projects.
Fibre2Fashion News Desk (DS)
The MoU will remain effective from May 2026 to February 2028 and establishes a broad framework for technical cooperation focused on green industrial transformation.
Bangladesh trade body BGMEA and Germany’s GIZ recently signed an MoU to strengthen sustainability, energy efficiency and circularity in Bangladesh’s RMG industry.
The MoU will remain effective from May 2026 to February 2028.
The cooperation is designed to align industrial growth with international sustainability benchmarks and climate commitments.
A major focus is energy transition of the sector.
Both sides will jointly implement a range of technical initiatives in coordination with Bangladesh’s Ministry of Commerce, the Export Promotion Bureau and the Department of Environment. The cooperation is designed to align industrial growth with international sustainability benchmarks and climate commitments, according to the Bangladesh’s media outlets.
A major focus of the collaboration is energy transition of the apparel sector. Initiatives including energy efficiency for development (EE4DEV), technical and vocational education and training for renewable energy (TVET4RE) and project development programme (PDP) will support renewable energy adoption and energy efficiency improvements in garment factories.
These projects will be complemented by the Skills for Sustainable Employment (SKILLs4SE) programme, aimed at upgrading workforce capabilities to meet emerging industrial demands.
The MoU also prioritises circular economy practices, compliance and worker welfare through projects such as Sustainability in the Textile and Leather Industries (STILE II), Skills for self-Monitoring and Compliance with Clean and Fair Production in the Textile Industry (SCAIP), Social Protection for Workers in the Textile and Leather Sector (SOSI) and the CIRCLE initiative.
These are expected to strengthen environmental accountability, improve social protection mechanisms, and enhance textile waste management systems.
The agreement outlines several strategic areas of cooperation, including preparation for evolving European Union market requirements related to supply chain due diligence, traceability, and decarbonisation.
The Responsible Business Helpdesk (RBH) will also receive institutional support to improve compliance readiness among manufacturers.
Additional areas of collaboration include advanced environmental and chemical management, regular energy audits, technical workforce training, digitalisation of worker protection systems, transparent textile waste marketplaces and greater adoption of international technologies for sustainable manufacturing.
Gender inclusion has also been identified as a key pillar of the partnership.
Fibre2Fashion News Desk (DS)
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