Growth in activewear unit sales at Gildan

05 Feb '08

3 min read

Gildan Activewear Inc announced its financial results for its first quarter ended December 30, 2007. The Company also updated its earnings guidance for its 2008 fiscal year, and initiated EPS guidance for the second quarter.

First Quarter Sales and Earnings:
Gildan reported first quarter net earnings of U.S. $27.5 million and diluted EPS of U.S. $0.23, up respectively 76.3% and 76.9% from net earnings of U.S. $15.6 million and diluted EPS of U.S. $0.13 in the first quarter of fiscal 2007.

Results for the first quarter of fiscal 2008 include a charge of U.S. $0.8 million to reflect ongoing carrying costs for Canadian and U.S. manufacturing facilities, pursuant to the closure of these facilities in fiscal 2007.

Before reflecting restructuring charges in both fiscal years, adjusted net earnings for the first quarter were U.S. $28.3 million, or U.S. $0.23 per share, up respectively 66.5% and 64.3% from adjusted net earnings of U.S. $17.0 million, or U.S. $0.14 per share, in the first quarter of fiscal 2007.

The growth in EPS was primarily due to higher unit sales volumes, selling prices and manufacturing efficiencies for activewear. As a result of the same factors, diluted EPS was U.S. $0.02 higher than the earnings guidance previously provided by the Company.

The acquisition of V. I. Prewett & Son, Inc. ("Prewett") was accretive by U.S. $0.01 per share in the quarter. Results for Prewett have been included with effect from the date of the acquisition on October 15, 2007.

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