• 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

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.