The Company also updated its earnings guidance for fiscal 2013 which it had initiated on November 29, 2012 and reconfirmed on February 6, 2013, and provided guidance for sales and earnings for the third quarter of fiscal 2013.
Second Quarter Results
Net earnings were U.S. $72.3 million or U.S. $0.59 per share on a diluted basis for the second fiscal quarter ended March 31, 2013, compared with net earnings of U.S. $26.9 million or U.S. $0.22 per share in the second quarter of fiscal 2012.
Results for the second quarter of fiscal 2013 include restructuring and acquisition-related costs amounting to U.S. $0.4 million after tax. Before the restructuring and acquisition-related costs, adjusted net earnings for the second quarter of fiscal 2013 were U.S. $72.7 million or U.S. $0.59 per share, compared to adjusted net earnings of U.S. $27.8 million or U.S. $0.23 per share in the second quarter of last year.
The Company had previously projected adjusted net earnings of U.S. $0.54-$0.57 per share for the second quarter, when it reported its first quarter results on February 6, 2013.
Results were more favourable than projected due to lower than forecast promotional discounting in Printwear, partially offset by lower than forecast unit sales volumes, which the Company believes was largely due to cooler seasonal weather conditions in the second quarter, and a charge of U.S. $0.02 per share to provide for the cost of discontinuing certain Anvil product-lines in order to re-focus the brand on contemporary ring-spun products, which had not been reflected in the Company’s earnings guidance.
The growth in the Company’s net earnings compared to the second quarter of last year was due to the benefit of significantly lower cotton costs together with higher unit sales volumes in both operating segments, and more favourable product-mix for Branded Apparel, partially offset by lower selling prices for Printwear, including the U.S. $0.04 per share impact of a distributor inventory devaluation discount in the quarter, higher manufacturing costs, the charge for the discontinuation of Anvil product-lines, higher selling, general and administrative expenses and higher income taxes.
Net sales in the second quarter amounted to U.S. $523.0 million, up 8.4% from U.S. $482.6 million in the second quarter of fiscal 2012. The Company had projected sales for the second quarter of approximately U.S. $520 million. Sales for the Printwear segment amounted to U.S. $368.0 million, up 2.0% from U.S. $360.9 million in the second quarter of fiscal 2012, and sales for the Branded Apparel segment were U.S. $155.0 million, up 27.4% from U.S. $121.7 million in the second quarter of last year.
Fashion | On 25th Jul 2017
Global fashion luxury brand Michael Kors Holdings Limited has reached ...
Apparel/Garments | On 25th Jul 2017
VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...
Textiles | On 25th Jul 2017
Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...
Shingora Textiles Ltd
‘In terms of fabric, the fastest growing category for us is a blend of...
‘Sustainable fashion is trending upwards, slowly but surely, as people...
Sunil Kumar Sharma
Loknayak JPNSSSG Ltd
'The blend of cotton–linen yarn has high demand in the domestic and...
Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...
Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Apparel/Garments | On 25th Jul 2017
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes No Skip
Do you think adopting a sustainable approach will be a profitable move for your business?Yes No Skip
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes No Skip
Thanks for your valuable feedback. Claim your free latest sustainability e-book.