Home / Knowledge / News / Apparel/Garments / Gildan Activewear slips into losses in Q4 FY '15
Gildan Activewear slips into losses in Q4 FY '15
11
Feb '15
For the fourth fiscal quarter ended January 4, 2015, Gildan Activewear said it slipped in to losses, when compared with fourth fiscal quarter of previous year.

Gildan reported a net loss of US$41.2 million or US$0.34 per diluted share for the fourth fiscal quarter of 2014 compared with net earnings of US$41.7 million or US$0.34 per share in the prior year quarter.

Gildan said the adjusted net loss for the quarter was in line with the Company’s previously projected net loss of approximately US$0.30 per share.

Consolidated net sales in the fourth fiscal quarter of 2014 amounted to US$390.6 million, down 13.5 per cent from US$451.4 million in the year ago quarter.

Earlier, Gildan had projected net sales for the quarter of approximately US $400 million.

Gildan attributed the decline in sales and earnings compared to last year to strategic pricing actions in Printwear, which it had announced on December 3, 2014 in order to reinforce its leadership position.

The apparel marketer lowered base selling prices significantly and reduced and simplified its discount structure, in order to be responsive to distributors.

“The selling price reductions reflect the pass through of a portion of the cost savings from the Company’s capital investments in new yarn spinning facilities and other capital investment projects,” it added.

Net sales for the Printwear segment amounted to US$160.3 million, down from US $261.8 million in the corresponding quarter of the prior year.

The dip in Printwear sales reflects lower net selling prices, including impact of distributor inventory devaluation discount of US$47.5 million and increased inventory destocking by US distributors.

“This more than offset the approximate 15 per cent rise in international printwear sales which was achieved in spite of the decline in the value of currencies relative to the US dollar,” Gildan explained.

Net sales for Branded Apparel touched US$230.3 million, up 21.5 per cent from US $189.6 million in the same quarter of last year.

The segment sales growth was due to the acquisition of Doris, organic growth in Gildan branded programs, particularly sales of branded underwear which zoomed 90 per cent and growth in licensed brands.

“These positive factors were partially offset by lower sales for Gold Toe brands due to the timing of shipments and inventory destocking by certain retail customers,” Gildan observed.

Excluding the impact of Doris, organic sales growth in Branded Apparel was approximately 8 per cent in spite of the decline in Gold Toe sales.

Gildan also inked an agreement to acquire substantially all of the assets of Comfort Colors, a leading brand in the growing fashion basics segment of the Printwear market, for approximately US$100 million.

Including the impact of Comfort Colors, Gildan expects 2015 net sales to be slightly in excess of US$2.65 billion, compared to its initial guidance of close to US$2.65 billion provided on December 4, 2014. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search