• Q3 net earnings down 10.8% to $78.6m
  • Net sales increased 13.3% 

T-shirt and sock maker Gildan Activewear saw third-quarter net profits slump as lower prices of printwear and manufacturing costs hurt the company.

Net earnings for the third quarter declined 10.8% to US$78.6m, as printwear prices fell and it wound down the Rio Nance I facility, which is currently being modernised and refurbished. 

Manufacturing costs also include a non-cash charge of $0.03 per share to write off obsolete manufacturing equipment at the company's Rio Nance I facility.

Gross margins fell to 23.9% compared to 27.9% last year, while operating income edged down 0.5% to $82.6m.

Net sales increased 13.3% to $600.2m. Branded apparel sales increased 19.7% to $150.9m, while sales of printwear were up 11.3% to $449.3m.

Meanwhile, for the nine months to the end of July, net earnings plummeted 68% to $59.4m, while operating income slumped 62% to $68.4m.

Net sales increased 11.5% to $1.39bn on the back of the acquisitions of Gold Toe Moretz and Anvil, as well as higher selling prices for branded apparel, offset by lower selling prices of printwear during the third quarter.