News Flash

Gildan sees strong growth in activewear

15 May '10

4 min read

At the end of the March quarter, overall inventories in the U.S. distributor channel were down by 5.5% compared with a year ago. Gildan's share of distributor inventories was 50.9% at March 31, 2010, compared with its market share of 64.4% for the quarter as shown above. Preliminary S.T.A.R.S. data for the month of April has continued to be strong.

Consolidated gross margins in the second quarter were 27.8%, compared to 15.8% in the second quarter of fiscal 2009. The increase in gross margins compared to last year was primarily due to gains in manufacturing efficiencies, lower cotton and energy costs and more favourable activewear product-mix, partially offset by the impact of the inefficiencies due to the Haiti earthquake.

Selling, general and administrative expenses in the second quarter were U.S. $38.7 million, compared to U.S. $30.9 million in the second quarter of fiscal 2009. The increase in SG&A expenses from last year was primarily due to the impact of the higher-valued Canadian dollar on corporate administrative expenses, and higher performance-driven variable compensation expenses. Selling, general and administrative expenses amounted to 11.8% of sales in the second quarter of fiscal 2010 compared to 12.6% of sales in the second quarter of fiscal 2009.

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Gildan Activewear Inc

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