Gildan Activewear Inc. announced its results for its first fiscal quarter ended December 29, 2013. Adjusted net earnings of U.S. $0.35 per share were a record for the first quarter of a fiscal year, which is seasonally the lowest sales quarter for T-shirts in the fiscal year, and at the top end of the guidance range which the Company had provided on November 21, 2013.
The Company also reconfirmed its prior guidance for the full 2014 fiscal year for EPS, sales revenues, capital expenditures and free cash flows. In addition, the Company provided sales and EPS guidance for its second fiscal quarter.
First Quarter Results
Net earnings were U.S. $41.7 million or U.S. $0.34 per share on a diluted basis for the first fiscal quarter ended December 29, 2013, compared with net earnings of U.S. $35.3 million or U.S. $0.29 per share for the first quarter of fiscal 2013.
Before reflecting restructuring and acquisition-related costs in both years, adjusted net earnings for the first quarter of fiscal 2014 were U.S. $43.3 million or U.S. $0.35 per share, up 10.7% and 9.4%, respectively compared to adjusted net earnings of U.S. $39.1 million or U.S. $0.32 per share in the first quarter of the previous year.
The growth in earnings and EPS in the first quarter compared to last year was primarily due to growth in sales revenues in both of the Company’s operating segments, partially offset by higher selling, general and administrative expenses.
Net sales in the first quarter amounted to U.S. $451.4 million, up 7.3% from U.S. $420.8 million in the first quarter of fiscal 2013. The Company had projected net sales for the quarter of approximately U.S. $450 million.
Net sales for the Printwear segment amounted to U.S. $261.8 million, up 7.4% from U.S. $243.7 million in the first quarter of fiscal 2013.