Gildan plans to run at full capacity to rebuild inventories
08 Aug '11
4 min read
Gross margins in the third quarter were 28.3% compared to 27.1% in the third quarter of fiscal 2010, due to manufacturing efficiencies and the impact of the Gold Toe Moretz acquisition. The impact of higher net selling prices on percentage gross margins offset the impact in the quarter of the higher cost of cotton. Gildan's cost of cotton in the third quarter was approximately U.S. $1.25 per pound, compared to U.S. $0.64 per pound in the third quarter of fiscal 2010, and in line with the Company's forecast for the quarter.
Gross margins for the third quarter had been projected to be in the range of 26%-26.5%. The higher than projected gross margins in the third quarter were due to more favourable net selling prices, partially offset by unfavourable product-mix due to the later timing of fleece programs which are being shipped in the fourth quarter.
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