Home / Knowledge / News / Gildan Activewear Q1 sales skyrocket 38.5%
Gildan Activewear Q1 sales skyrocket 38.5%
07
Feb '13
Gildan Activewear Inc announced record results for the first quarter of a fiscal year, which was slightly in excess of the guidance range which it had previously provided, and reconfirmed its earnings guidance for fiscal 2013 which it had initiated on November 29, 2012. The Company also provided guidance for sales and earnings for the second quarter of fiscal 2013.

First Quarter Results

Gildan reported net earnings of U.S. $35.3 million or U.S. $0.29 per share on a diluted basis for its first fiscal quarter ended December 30, 2012, compared with a net loss of U.S. $46.1 million or U.S. $0.38 per share in the first quarter of fiscal 2012. Results for the first quarter of fiscal 2013 include restructuring and acquisition-related costs amounting to U.S. $3.8 million after tax, primarily related to the acquisition of Anvil Holdings Inc. (Anvil) and the further write-down of assets held for divestiture since the closure of U.S. sock manufacturing operations. Before the restructuring and acquisition-related costs, adjusted net earnings for the first quarter of fiscal 2013 were U.S. $39.1 million or U.S. $0.32 per share, compared to a net loss of U.S. $45.8 million or U.S. $0.38 per share in the first quarter of last year.

The Company had previously projected adjusted net earnings of U.S. $0.28-$0.31 per share for the first quarter, when it reported its fiscal 2012 fourth quarter and full year results on November 29, 2012. Results were slightly more favourable than projected due to lower than forecast promotional discounting in Printwear, partially offset by the impact of the cost of repairs at the Dominican Republic textile facility due to hurricane damage which amounts to approximately U.S. $0.02 per share, primarily in the first quarter, and which had not been reflected in the Company's previous earnings guidance.

The Company incurred a loss in the first quarter of last year due to a combination of factors including historically high costs of cotton, abnormally high levels of inventory destocking by wholesale distributors, a special distributor inventory devaluation discount, an abnormally high promotional discount rate in the U.S. distributor channel and an extended holiday manufacturing shutdown in order to manage inventory levels.

The significant improvement in the Company's results in the first quarter compared to the first quarter of last year was due to the benefit of significantly lower cotton costs, improved market conditions for Printwear and the accretion from the acquisition of Anvil. These positive factors were partially offset by lower selling prices for Printwear, primarily reflecting the selling price reductions implemented in the first quarter of fiscal 2012, and higher selling, general and administrative expenses.

Net sales in the first quarter amounted to U.S. $420.8 million, up 38.5% from U.S. $303.8 million in the first quarter of fiscal 2012. The Company had projected that sales for the first quarter would be in excess of U.S. $400 million. Sales for the Printwear segment amounted to U.S. $243.7 million, up 65.6% from U.S. $147.2 million in the first quarter of fiscal 2012, and sales for the Branded Apparel segment were U.S. $177.0 million, up 13.0% from U.S. $156.6 million for the first quarter of last year.

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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