• 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.