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: Fashion Revolution/Fashion Transparency Index

Apparel/Garments | On 23rd Apr 2018

Transparency helps in swiftly alerting brands

Disclosing key supplier, supply chain and operational information...

Japan’s clothing imports up 4% in fiscal 2017

Apparel/Garments | On 23rd Apr 2018

Japan’s clothing imports up 4% in fiscal 2017

Japan’s imports of clothing and accessories increased by 4 per cent...

Courtesy: Fashion Revolution/Fashion Transparency Index

Fashion | On 23rd Apr 2018

Top global fashion brands now more transparent

Fashion Revolution’s Fashion Transparency Index 2018 reveals Adidas...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

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

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

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

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

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search