CANADA: Gildan Q1 loss blamed on destocking
- Q1 loss of US$46.1m, versus $35.9m profit
- Net sales down 8.3% to $303.8m
- Destocking, cotton costs blamed for loss
Gildan Activewear slid to a first quarter loss as sales fell by 8.3%, and despite a strong retail showing thanks to new acquisition Gold Toe Moretz.
The Canada-based business blamed the impact of higher cotton costs and destocking by US wholesale distributors for the slump, with printwear sales falling 41.1% to $147.2m.
Sales to retailers surged up 92.7% to $156.6m, thanks to the acquisition of the Gold Toe Moretz brand, as well as higher net selling prices.
Gildan now expects to post full-year revenues of about $1.9bn for fiscal 2012, and earnings per diluted share of $1.30.
T-shirt and sock maker Gildan Activewear saw third-quarter net profits slump as lower prices of printwear and manufacturing costs hurt the company....
Apparel company Gildan Activewear has completed the acquisition of apparel maker Anvil Holdings for US$88m....
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