• Q2 adjusted net profit up 8.9% to US$79.2m
  • Net sales rise 4.9% to $548.8m
  • Raises FY revenue guidance
Gildan Activewear saw printwear sales rise 2.9% in the second quarter

Gildan Activewear saw printwear sales rise 2.9% in the second quarter

Apparel business Gildan Activewear saw adjusted net second quarter profit increase thanks to stronger sales of underwear and branded products.

The Canadian company reported strong growth in underwear in the US retail sector in particular, as well as better sales to global lifestyle brands and international printwear markets, partially offset by higher cotton costs.

Gross margins dipped by 10 basis points to 27.9%, thanks to a decision not to fully pass on those higher cotton costs to the consumer.

Printwear sales were up 2.9% to $378.5m in the three months to 30 March, with volumes essentially flat, thanks to higher sales in international markets offset by declines in the US and Canada in colder weather.

Branded apparel revenues rose 9.9% to $170.3m, boosted by continued strong demand for Gildan-branded items, which posted sales up 50% on last year.

Gildan upped its full-year revenue forecast to $2.4bn from $2.35bn, but maintained its adjusted earnings per diluted share prediction at $3.00-3.10, up 11.5-15.2% on the previous fiscal year.