CANADA: Gildan Activewear books 48% hike in Q3 profit
- Q3 profit jumps 47.9% to $66.4m
- Net sales climb 28.4% to $395.3m
- Holds projections for 25% rise in FY revenues
Strong sales of its activewear and underwear lines have helped Gildan Activewear Inc 47.9% jump in third quarter profit.
The Montreal-based firm said net earnings for the three months to 4 July soared to $66.4m or $0.54 per share, compared to $44.9m or $0.37 per share a year earlier. Excluding a restructuring charge related to the consolidation of its US distribution activities, profit would have been $64.7m or $0.53 per share, it said.
Earnings were also dented by supply chain inefficiencies due to the integration of new retail products and the impact of the Haiti earthquake, Gildan claimed.
Net sales jumped 28.4% to $395.3m, up from $307.8m last year. This growth was driven by a 36.1% hike in sales of activewear and underwear to $351.3m as the company grabbed a higher market share in the US wholesale distributor channel, and benefited from a recovery in overall industry demand.
On the other hand, sales of socks fell 11.5% to $44.0m, which was blamed on short-term supply issues during the ramp-up of Rio Nance IV manufacturing facility in Honduras.
Gross margins in the quarter increased to 27.1% from 24.4% last time.
Looking ahead, Gildan continues to project a 25% rise in full year sales to US$1.3bn.
Faced with rising apparel costs and the likelihood that 2011 will be a perfect storm of pricing uncertainty - or what Mike Todaro, managing director of AAPN (the American Apparel Producers' Network) d...
Here is a roundup of the top five most-read articles on just-style this week. Click on each headline for the full story....
T-shirt and underwear maker Gildan Activewear Inc has got off to a record start to its latest financial year, with first-quarter sales up 50.3% in what is traditionally its lowest quarter....
T-shirt and underwear maker Gildan Activewear Inc has booked a 34% hike in fourth quarter earnings, but warned that higher cotton costs in the year ahead are likely to eat into margins....
- 2014: Year in review - Sourcing winners and losers
- 2014: Year in review - Brand winners and losers
- 2014: Year in review - Retail winners and losers
- Bangladesh: Raising the bar on apparel exports?
- COMMENT: The decline of the buying office
- Report urges overhaul of Cambodia factory safety
- Bangladesh knitting worker killed by faulty lift
- Bangladesh factory improvements “will take years”
- North Face debuts locally-grown "backyard" hoodie
- Tommy Hilfiger launches solar-powered jacket