Global fashion brands in Israel split across three companies: Irani distributes, Fox franchises, and Delta Galil manufactures. Here is how each earns.
How Do Global Fashion Brands Actually Make Money in Israel?
A global fashion brand entering Israel does not run one business there. It runs three separate ones at once, each captured by a different Israeli company: Irani Group as authorized retailer, Fox Group as franchisee and parallel-import marketplace, and Delta Galil Industries as manufacturer. SKIMS' 2025 entry into Israel shows all three roles operating around a single brand at the same time.
What Does Irani Group Do That the Others Don't?
Irani Group, operating as Al-Srad Ltd. and known to consumers as Factory 54, represents brands it does not own. Calcalist reported in 2023 that the group ran 140 stores and represented roughly 150 brands, including Polo Ralph Lauren, Armani, Lululemon, Michael Kors, UGG, Boss and Diesel. When SKIMS wanted an Israeli retail presence, it was Irani that supplied the leases, staff, local inventory and store buildout. Irani earns a distribution and retail margin on goods it does not manufacture and, in most cases, does not own outright.
This is not a one-brand relationship. Irani-linked Arion Retail Group was named Lululemon's franchise partner for expansion into Greece, Austria, Poland, Hungary and Romania during 2026, a deal Lululemon announced in December 2025. The SKIMS deal and the Lululemon expansion both rest on the same underlying asset: an operator that global brands trust to build and run stores on their behalf, in markets where they would rather not build a country organization from scratch.
How Does Fox Group Capture Value Differently?
Fox Group (TASE: FOX), co-run by Harel Wiesel and chairman Avraham Fox, operates on two tracks at once. Its Terminal X platform sold SKIMS through parallel import starting in May 2025, six months before Irani's official Factory 54 launch, without any franchise agreement at all. Separately, Fox holds direct franchise rights to brands including Nike, Mango and Foot Locker, and its subsidiary Retailors extends the Nike and Foot Locker franchise into 14 European countries. Where Irani needs an exclusive agreement before it can operate, Fox's Terminal X business does not; it can add a brand to its marketplace the moment consumer demand appears, months ahead of any official deal.
What Is Delta Galil's Role in the Same Supply Chain?
Delta Galil Industries (TASE: DELG) sits upstream of both Irani and Fox. The company manufactures for brands including SKIMS, Nike, Victoria's Secret and Lululemon, and separately owns Delta Israel Brands, which represents Victoria's Secret and Bath & Body Works at retail in Israel and reported 244 stores as of June 30, 2026. Delta Galil can be part of a brand's global cost structure without ever touching that brand's Israeli storefront, the reverse of Irani's position, and it can also compete at the storefront level through Delta Israel Brands when the two roles overlap.
| Company | Role Around a Global Brand | How It Earns |
|---|---|---|
| Irani Group | Authorized Israeli retailer and representative | Distribution and retail margin |
| Fox Group / Terminal X | Franchisee and parallel-import marketplace | Franchise retail margin plus marketplace sales |
| Delta Galil Industries | Manufacturer, sometimes also Israeli retailer via Delta Israel Brands | Manufacturing margin, retail margin where it owns the franchise |
Does This Three-Way Split Only Apply to SKIMS?
No. The same structure shows up across most global apparel brands with a presence in Israel. Lululemon runs through Irani's Arion Retail Group as an authorized franchisee in Israel and, as of 2025, across five additional European countries. Nike runs through Fox Group domestically and through Fox subsidiary Retailors internationally. Victoria's Secret runs through Delta Israel Brands at retail while Delta Galil separately manufactures for other apparel brands entirely unrelated to its own retail business. SKIMS is the clearest recent example because all three roles became visible in the same eight-month window in 2025.
The pattern also explains why a brand's Israeli presence can look inconsistent from the outside. A shopper might find the same brand sold through an official mono-brand store, a multi-brand marketplace, and manufactured domestically for export, all without any of the three companies involved being aware of exactly what the other two are doing commercially, since only the global brand owner sits above all three relationships at once.
Why Does the Same Brand Deal With Three Companies Instead of One?
Each company's advantage is structural, not accidental. Irani's advantage is retail infrastructure built specifically around representing brands, which a brand cannot easily replicate on its own in a market the size of Israel. Fox's advantage is an existing logistics and marketplace network large enough to test demand before any exclusive deal exists. Delta Galil's advantage is manufacturing capacity, which has nothing to do with either company's retail presence. A brand entering Israel is not choosing one partner; it is deciding which of these three functions it needs covered, and by whom, and the answer is frequently "more than one of them."
Key Facts
Authorized retail representation: Irani Group / Factory 54 (Al-Srad Ltd.)
Franchise and parallel-import marketplace: Fox Group (TASE: FOX), via Terminal X and Retailors
Manufacturing and upstream supply: Delta Galil Industries (TASE: DELG)
Retail arm that also competes at store level: Delta Israel Brands
Related Olam Coverage
SKIMS Israel: Stores, Prices, Shipping and Where to Buy · Fox Group · Delta Galil Industries · Harel Wiesel