CANADA: Gildan Activewear Q4 improves on easing cotton prices
- Fourth quarter net earnings reached $89m,
- Sales increased 16.6% to $561.7m
- Full year net earnings fell to $148.5m from $234.2m
- Full year sales rose 12.9% to $1.9bn
Gildan Activewear recorded a jump in fourth quarter net earnings as the group benefited from lower cotton costs, higher printwear unit sales volumes, more favourable product-mix and higher selling prices for Branded Apparel, and the initial accretion from the acquisition of Anvil Holdings.
The Canadian company saw net earnings reach US$89m over the quarter ended 30 September from $48.5m in the same period of the prior year. Net sales increased 16.6% to $561.7m. Printwear sales rose 7.5% to $376.8m, and branded apparel sales grew 41% to $184.8m.
However, full year net earnings fell to $148.5m from $234.2m in the prior year. Excluding restructuring and acquisition related costs, adjusted net earnings reached $157.3m against $246.9m in the prior year. It attributed the decline to higher cotton prices in the first half of the year, lower printwear selling prices and higher income taxes. Sales rose 12.9% to $1.9bn.
The company said it expects an adjusted EPS of $2.60-2.70 for fiscal 2012, on projected net sales revenues of approximately $2.1 billion. In 2012, the company earned $1.22 per share. Net sales for printwear are projected to be approximately $1.4 billion and net sales for Branded Apparel are projected to be approximately $0.7 billion.
Canadian apparel maker Gildan Activewear has reached a US$1m settlement with Russell Brands, a Fruit of the Loom company, to resolve a trademark infringement lawsuit....
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