CANADA: Gilden Activewear more than doubles Q2 profit
- Q2 profit surges 168.8% to $72.3m
- Sales rose 8.4% to $523m
- Gross margins improved to 28.9%
Gildan more than doubled its second-quarter profit
Canadian apparel business Gildan Activewear has lifted its full-year outlook after more than doubling its second-quarter net profit, thanks to low cotton prices and higher sales.
The company today (2 May) said net earnings reached US$72.3m for the quarter ending 31 March, over $26.9m in the same period last year, in spite of challenging market conditions and the impact of unseasonal weather conditions.
Sales rose 8.4% to $523m from $482.6m the prior year. Printwear sales climbed 2% to $368m, while branded apparel sales jumped 27.4% $155m.
Gross margin improved to 28.9% against 17.8% last year, due to lower-cost cotton and a more favourable product mix for branded apparel.
During the first six months of the year, net earnings reached $107.6m, compared to a loss of $19.2m the year before. Sales revenues jumped 20% to $943.8m against $786.4m.
Looking forward, Gildan expects full-year adjusted earnings per share to reach $2.65-$2.70, which is at the upper end of its earlier guidance of $2.60-$2.70. Sales revenues are now forecast to be slightly in excess of $2.15bn.
Meanwhile, the company expects adjusted net earnings per share to range from $0.92 to $0.95, from $0.66 the prior year. Sales revenues are projected to be $630m.
Gildan’s strategy focuses on production downtime to better align inventory levels with projected sales and improve supply chain efficiency. The company is also seeking to further increase its presence...
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; corporate social responsibility (CSR); financial results; international trade policy...
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company rebranding; company restructuring; corporate social responsibility (CSR); fi...
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