Home / Knowledge / News / Apparel/Garments / Gildan Q2'FY14 earnings at top end of guidance range
Gildan Q2'FY14 earnings at top end of guidance range
02
May '14
Gildan Activewear Inc. announced its results for its second fiscal quarter ended March 30, 2014. Net earnings of U.S. $0.64 per share were a record for the second quarter of a fiscal year and at the top end of the guidance range which the Company had provided on February 5, 2014.
 
The Company slightly increased its guidance for full year sales revenues but reiterated its prior guidance range for adjusted EPS for the full fiscal year, to include the impact of additional transitional manufacturing costs which are being incurred to support its projected sales growth in 2014 and 2015.
 
Highlights:
-EPS for Q2 of U.S. $0.64, up 8.5% from U.S. $0.59 in Q2 of Fiscal 2013
-Full Year Sales Revenues Now Expected to be Approximately U.S. $2.4 Billion, Versus Prior Guidance of Approximately U.S. $2.35 Billion
-Full Year Guidance for Adjusted EPS Reconfirmed at U.S. $3.00-$3.10 as Increased Sales Projected to be Offset by Transitional Manufacturing Costs to Support Sales Growth
-Planned New Textile Facility to be Located in Costa Rica
 
Second Quarter Consolidated Results
Net sales in the second quarter amounted to U.S. $548.8 million, up 4.9% from U.S. $523.0 million in the second quarter of fiscal 2013. The Company had projected net sales for the quarter in excess of U.S. $550 million. Adjusted net earnings were U.S. $79.2 million or U.S. $0.64 per share on a diluted basis for the second fiscal quarter ended March 30, 2014, up 8.9% and 8.5% respectively compared with adjusted net earnings of U.S. $72.7 million or U.S. $0.59 per share for the second quarter of fiscal 2013. 
 
The growth in sales and EPS in the second quarter compared to last year was achieved in spite of the impact of colder weather which negatively impacted demand for T-shirts and contributed to soft retail market conditions. 
 
The Company's results reflected strong growth in sales of underwear to U.S. retailers, increased sales to global lifestyle brands and international printwear markets and the non-recurrence of a distributor inventory devaluation discount in the second quarter of fiscal 2013. These positive factors were partially offset by higher cotton costs compared to the second quarter of last year.
 
Consolidated gross margins in the second quarter were 27.9% compared to 28.9% in the second quarter of last year, as the impact of higher cotton costs compared to last year was only partially passed through into higher net selling prices in Printwear and selling prices for Branded Apparel were not increased. 
 
Gross margins were also negatively impacted by inflationary cost increases and transitional manufacturing inefficiencies which are being incurred primarily in sock operations and the former Anvil textile operations, to support new programs and the introduction of new products, and which offset the favourable impact of other manufacturing cost reduction projects.
 
Click here to view full results.
 

Gildan Activewear


Must ReadView All

Apparel/Garments | On 30th Apr 2016

Britain keen on new ventures in textiles and garment

British High Commissioner to India Sir Dominic Asquith, has said that ...

Apparel/Garments | On 30th Apr 2016

‘India’s apparel sector needs to revisit policies’

Apparel Export Promotion Council (AEPC)’s Additional Secretary...

Textiles | On 30th Apr 2016

Bangladesh spinners wary of another gas price hike

Bangladeshi cotton spinners have expressed concern that they may lose ...

Interviews View All

Dastaquir Ismail
GT Nexus, Asia Pacific

What advice would you give to companies seeking finance? What are the...

Nick Preston
Hardy Amies

What are the popular apparel fashion trends in UK? Why do you think is the ...

Rahuul Jashnani
Jashn

What is the size of the ethnicwear vertical in India? How are Indian...

Mr. K.K. Agarwal
Alps Industries Limited

Mr. K.K. Agarwal, Chairman of Alps Industries Limited, aged 69 years is a...

Daniel Dwight
Cooley Group

An international executive with significant experience leading high-tech...

Eric Scholler
Groz-Beckert

<b><i>The Indian market has huge potential in technical textiles, and by...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search