CANADA: Gildan Q1 profit lifted by revenue boost
- Q1 net profit up 18% to US$41.7m
- Net sales rise 7.3% to $451.4m
- Gross margins down slightly on lower printwear prices
Apparel company Gildan Activewear recorded an 18% rise in first quarter earnings, buoyed by revenue increases in both its major operating segments.
Printwear revenues were up 7.4% to $261.8m in the three months to 29 December, while branded apparel sales rose 7.1% to $189.6m.
Meanwhile, gross margins fell slightly – down to 26.4% from 26.8% a year ago – thanks to lower printwear prices, partially offset by a more favourable printwear product mix and slightly lower cotton costs.
Gildan said it planned capital expenditure of $300-350m in fiscal 2014, most of it on yarn-spinning, the upgrading of production facilities and the construction and acquisition of new manufacturing capacity.
For the second quarter, the Canadian company expects to record adjusted earnings per share of $0.61-64, up 3.4-8.5% on last year, on revenues of over $550m, up 5%-plus.
It reiterated its full-year forecast of net sales of $2.35bn and adjusted EPS of $3.00-3.10.
Analyst BMO Capital Markets said the results announcement contained “several bright spots”, including retail programme wins, new licensing deals and progress on capital projects.
US apparel maker Gildan Activewear has appointed James Kehoe as its new chief financial and administrative officer, with effect from 1 January....
This report provides information, analysis and valuable insight on developments relating to the global apparel industry in the following categories: acquisitions, divestments and mergers; corporate so...
- Why have US FTA imports fallen to a record low?
- Hanesbrands sourcing to cut Pacific Brands costs
- Why China makers are moving out or moving online
- Apparel manufacturing hubs vying for business
- Multiple country choices require complex decisions
- Li & Fung divests Asia distribution business
- US looks to boost trade with Sri Lanka
- Vietnam textile sector calls for strategy update
- Aeropostale to close 154 stores amid bankruptucy
- US Q1 in brief: Wolverine Worldwide, Weyco