Delta Galil Industries Ltd. - Competitors

Delta Galil Industries Ltd. Competition

Now Viewing Delta Galil Industries Ltd.'s competition in: Apparel Manufacture (primary)

Recent Developments

Geoffrey Beene Closes Stores - Phillips-Van Heusen will close its Geoffrey Beene apparel retail stores by February 2009. The company expects an after-tax charge of $15 million to close the operation. Twenty-five Geoffrey Beene stores will be converted to Calvin Klein stores and the remaining 75 will be closed. Geoffrey Been is best known for its men's dress shirts.

Brooks Brothers Keeps US Tie Factory - Bucking apparel manufacturing trends that have 80 percent of apparel jobs moving offshore since 1990, Brooks Brothers manufactures all its ties at a plant in New York City. The company sees real advantages keeping its US factory, such as testing new fabrics, working with suppliers on innovations, and making changes "on the fly," which would be impossible to do offshore. The company notes the flexibility for innovation as reasons to manufacture in the US. The cost of ties is also 70 percent material, meaning that the labor component is much less important.

Retail Sales Surpass Expectations - Increased promotions and discounting and a late Easter caused retailer sales in April 2008 to exceed analyst expectations. But sales at traditional apparel stores were mixed: the Limited, Gap, and Pacific Sunwear had lower sales than expected, while The Buckle and Children's Place Retail Stores beat analyst forecasts. Stores that beat expectations did so with increased discounting, which lowered margins. Analysts hope that the economic stimulus checks, which began being distributed in April, will increase apparel sales near-term.

Competitive Landscape

Demand is largely determined by consumer tastes and the comparative costs of manufacture in the US and overseas. The profitability of individual companies depends on operation efficiency and the ability to secure contracts with clothing marketers. Small companies can compete effectively with large ones by specializing in a particular type of apparel manufacture. There are few economies of scale in manufacture, because of the high labor content of most apparel. The industry is labor-intensive: average annual revenue per production worker is about $125,000.

Full Industry Overview For Apparel Manufacture

Apparel Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US apparel manufacturing, including knit and sewn apparel and accessories, is forecast to grow at an annual compounded rate of -1.1 percent between 2007 and 2012.

Apparel Manufacturing Growth Weak

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.