• 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.