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Gildan Activewear posts 12.9% hike in Q3FY'14 sales

06 Aug '14

3 min read

For the third quarter of fiscal year 2013-14, Canada based Gildan Activewear Inc. reported a 12.9% rise in sales.

Net sales in the third quarter amounted to U.S. $693.8 million, up 12.9% from U.S. $614.3 million in the third quarter of fiscal 2013, which is close to projected net sales for of U.S. $700 million estimated by Gildan, earlier.

Net earnings in the third quarter of fiscal 2014 were U.S. $116.0 million or U.S. $0.94 per share on a diluted basis, compared with net earnings of U.S. $115.8 million or U.S. $0.94 per share for the third quarter of fiscal 2013.

Before reflecting restructuring and acquisition-related costs, adjusted net earnings were U.S. $116.6 million or U.S. $0.95 per share on a diluted basis for the third fiscal quarter ended July 6, 2014.

Consolidated gross margins in the third quarter were 28.0% compared to 31.5% in the third quarter of last year. SG&A expenses in the third quarter were U.S. $71.8 million, compared with U.S. $69.9 million in the third quarter of last year.

As a percentage of sales, SG&A expenses declined to 10.3% from 11.4% a year ago, reflecting the benefit of volume leverage in Branded Apparel.

During the third quarter of fiscal 2014, Gildan generated U.S. $12.2 million of free cash flow, after financing capital expenditures of U.S. $75.5 million and an increase in accounts receivable. Inventories were maintained at the same level as the end of the second quarter.

The Company ended the third quarter with cash and cash equivalents of U.S. $45.1 million and outstanding bank indebtedness of U.S. $135.0 million.

For the first nine months of fiscal 2014, net sales revenue amounted to U.S. $1.7 billion, up 8.7% from U.S. $1.6 billion in the same period of last year.

Net earnings for the first nine months of fiscal 2014 were U.S. $236.9 million, or U.S. $1.92 per share on a diluted basis, compared to U.S. $223.4 million, or U.S. $1.82 per share, up 6.0% and 5.5% respectively compared to the first nine months of fiscal 2013.

Before reflecting after-tax restructuring and acquisition-related costs in both years, adjusted net earnings were U.S. $239.2 million or U.S. $1.94 per share in the first nine months of fiscal 2014, up 4.8% and 4.3% respectively compared to adjusted net earnings of U.S. $228.3 million or U.S. $1.86 per share in the same period last year.

The Company also announced plans for the construction of a new textile facility in the Rio Nance complex in Honduras.

Fibre2fashion News Desk - India

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