Home / Knowledge / News / Apparel/Garments / Reported net dives 14.3% at Gildan Activewear in Q2FY16
Reported net dives 14.3% at Gildan Activewear in Q2FY16
01
Aug '15
Reported net income dived 14.3 per cent year over year for the second fiscal quarter ended July 5, 2015 at Canadian apparel marketer Gildan Activewear Inc.

Gildan reported net earnings of US $99.4 million or US $0.41 per share on a diluted basis compared with US $116.0 million or US $0.47 per share on a diluted basis for second quarter of fiscal 2016.

Before reflecting restructuring and acquisition-related costs of around $3.2 million after-tax in the quarter, Gildan posted adjusted net earnings of $102.6 million or $0.42 per share.

Net earnings for the reporting quarter continued to reflect the impact of the Printwear selling price reductions, in advance of the benefit of lower manufacturing and cotton costs.

The positive earnings impact of higher sales and operating margins in Branded Apparel and lower income taxes was more than offset by lower Printwear sales and operating margins and higher financial expenses.

Net sales in the second quarter of fiscal 2015 amounted to $714.2 million, up 2.9 per cent from $693.8 million in the corresponding quarter of prior fiscal.

“This reflects an increase of 12.3 per cent in sales for Branded Apparel, partially offset by a 1.2 per cent decline in Printwear sales largely due to the selling price reductions,” it said in a press release.

Gildan added that net sales in the quarter were below the Company's guidance of net sales of $750 million, which it provided on May 14, 2015.

“This was primarily as a result of lower than anticipated inventory replenishment by a major US retail customer and lower than anticipated Printwear sales in Europe,” the marketer informed.

At end the end of the quarter, the Company generated $18.5 million of free cash flow after financing capital expenditures of $67.3 million and seasonal working capital changes.

Capital investments were primarily for new yarn-spinning facilities in the US, textile projects in Rio Nance and the expansion of the Company's printwear distribution centre in Eden, North Carolina.

The Company ended the quarter with cash and cash equivalents of $44.6 million and outstanding bank indebtedness of $593.0 million.

The Company is now projecting adjusted diluted EPS for the 12 months ending January 3, 2016 to be at the bottom of its previous guidance range of $1.50–$1.55 on projected sales of close to $2.6 billion.

“This is primarily to reflect the less favourable than projected results in the second quarter of 2015 and the continuing impact of the issues affecting second quarter sales and earnings, the company observed.

Sales growth in Printwear for the full fiscal year is now projected to be in excess of 10 per cent compared to the Company's previous projection of around 12 per cent due to lower sales in Europe.

Sales growth in Branded Apparel is now expected to be approximately 15 per cent as against previously anticipated sales growth in excess of 20 per cent. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Suresh Patel
Sidwin Fabric

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

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

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

September 2017

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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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