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Delta Galil lifted by growing US demand

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Intimate and activewear manufacturer reports record first-quarter sales and improved margins, supported by higher US orders and efficiency gains in its vertically integrated production network

Delta operates the Passionata brand

Caesarea – Seamlesswear specialist Delta Galil Industries has reported record first-quarter 2026 results, with sales rising 15% year-on-year to US$573 million.

The Israel-based company, which designs and manufactures intimate apparel and activewear for global brands and retailers, said performance was driven by higher US sales, stronger owned brands and ongoing investments in sourcing, production and distribution.

Chief executive Isaac Dabah said the quarter reflected the strength of Delta Galil’s global platform and its ability to execute in a “dynamic environment”, citing record first-quarter sales, gross profit, EBIT, EBITDA and operating cash flow.

He highlighted the expansion of owned brands and the benefits of strategic investments in innovation and manufacturing flexibility, alongside closer customer partnerships.

First-quarter sales increased across all geographies and business segments, with growth of 15% in reported terms and 10% in constant currency compared with the first quarter of 2025. The company reported that its main markets remain the US, Europe and Israel, supported by both branded and private label programmes in areas such as ladies’ intimates, men’s underwear, activewear, loungewear, sleepwear, shapewear and socks.

Delta Galil reported EBITDA of $44.9 million, up from $40.5 million in the first quarter of 2025, helped by its vertically integrated and global production and distribution structure, which covers the full value chain from design through to delivery of the final product.

This set-up is designed to provide operational flexibility and rapid response to market changes, which is particularly relevant for fast-moving categories such as athleisure, performance underwear and fashion-led hosiery where order cycles are shortening.

The company’s customer portfolio includes major global sports and lifestyle brands, as well as retailers and direct-to-consumer labels that rely on outsourced knitted fabric and garment production.

Leading customers cited by Delta Galil include Nike, Victoria’s Secret, Lululemon, Skims and Walmart, alongside licensed programmes for brands such as adidas, Columbia, Calvin Klein and Tommy Hilfiger.

Delta Galil also continues to build its own brand portfolio, including Delta, Schiesser, Eminence, Athena, Passionata, Splendid and PJ Salvage, giving it a mix of private label and branded business across different price points and channels.

 

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