Sales in the first quarter, which is seasonally the lowest quarter of the fiscal year for sales of activewear, amounted to U.S. $250.5 million, up 34.8% from U.S. $185.8 million in the first quarter of last year.
The increase in sales revenues was due to an increase of 92.7% or U.S. $39.4 million in sock sales due to the acquisition of Prewett and new retail sock programs obtained in fiscal 2007, a 13.7% increase in unit sales volumes for activewear, and an increase of approximately 2.5% in activewear unit selling prices.
The growth in sales was achieved in spite of the elimination during fiscal 2007 of unprofitable sock product-lines, which did not fit with Gildan's strategy.
The growth in activewear unit sales was primarily due to continuing market share penetration in all product categories in the U.S. wholesale distributor channel. Although the final S.T.A.R.S. report for market shares and overall industry demand for the calendar quarter ended December 31, 2007 is not yet available, preliminary S.T.A.R.S. data indicate that Gildan achieved record market shares in the T-shirt and fleece categories, and that overall industry shipments from U.S. distributors to screenprinters increased in the quarter, compared to the corresponding period in 2006. Inventories in the U.S. distributor channel continue to be in good balance.
During the first quarter, the Company obtained its first underwear program with a U.S. national mass-market retailer. Shipments for this program are expected to begin in May of 2008.
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