CANADA: Gildan Activewear Q2 down on higher cotton costs
- Q2 net earnings down to US$26.9m
- Gross margin slumps 17.8%
- Sales up 25.9% to $482.6m
Gildan Activewear today (3 May) reported a drop in second-quarter net earnings on the back of higher cotton costs.
Net earnings fell to US$26.9m, or US$0.22 per share on a diluted basis over the quarter ended 1 April from $61.7m, or $0.50 per share in the same period of the prior year.
Gildan Activewear attributed the decline to significantly higher cotton costs, which negatively impacted EPS in the second quarter by close to $0.70 compared to the second quarter of last year.
Gross margin fell to 17.8% against 28.4% in the prior year period.
Sales rose 25.9% to $482.6m, with sales in the printwear segment rising 11.5% to $350.9m and branded apparel sales increasing 104.2% to $121.6m.
The company also today announced the acquisition of sports shirt supplier Anvil for about $88m.
Gildan Activewear has launched an internal inquiry into the events surrounding a lawsuit filed against it by Russell Brands, part of Fruit of the Loom....
- Patagonia's CSR commitments re-shaping the sector
- Can Gap maintain its momentum minus Larsson?
- Brands back Cambodia industry-wide wage bargaining
- Can robotics redefine apparel manufacturing?
- Athletic players well positioned amid disruption
- Unions agree proposed Cambodia minimum wage
- New CEO may focus on Ralph Lauren supply chain
- Patagonia ramps up Fair Trade Certified apparel
- Nike collaborates on low-impact textile challenge
- Old Navy's Larsson to replace Ralph Lauren as CEO
- The future market potential for smart garments and e-textiles
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Global market review of lingerie - forecasts to 2020
- Outdoor performance apparel: peaks, valleys, and green fields