Home / Knowledge / News / Apparel/Garments / Gildan Activewear Q3 FY17 gross margin up 31%
Gildan Activewear Q3 FY17 gross margin up 31%
07
Nov '17
Courtesy: Gildan Activewear
Courtesy: Gildan Activewear
For the third quarter of fiscal 2017, the gross margin of Gildan Activewear was up 31 per cent, up 60 basis points over the same quarter in 2016. The increase was mainly due to higher net selling prices and favourable product mix in printwear, partly offset by unfavourable product mix in branded apparel, and higher raw material and other input costs.

The company generated strong earnings per share growth during the third quarter, with EPS of $0.52 and adjusted EPS of $0.53, up 6 per cent compared to the prior year. "Stronger than expected adjusted EPS was due to more favourable product mix in printwear, earnings contribution from the impact of the American apparel transaction, and lower income taxes, partly offset by lower than expected branded apparel sales, reflecting the continuation of a challenging retail market," the company said in a press release.

Consolidated net sales of $716.4 million in the third quarter ended October 1, 2017, were essentially flat compared to the prior year as printwear sales growth of 4.1 per cent was offset by 6.9 per cent decline in branded apparel sales compared to the third quarter of last year. Consolidated SG&A expenses as a percentage of sales were 13.2 per cent in the third quarter compared to 12.1 per cent in the same quarter last year, primarily due to the impact of the American apparel acquisition. The company generated a strong adjusted operating margin for the quarter of 17.8 per cent, slightly down from 18.3 per cent in the prior year quarter.

Consolidated net sales growth for the full year is now projected to be in the mid to high single digit range compared to the company's previous estimate of high single digit net sales growth. The company continues to expect strong full year printwear net sales growth in the high single digit range, while it is now projecting branded apparel net sales growth in the low single digit range versus its previous projection of high single digit growth, given current retail market conditions.

Due to stronger adjusted EPS, the company has expected adjusted diluted EPS for the full year to be in the range of $1.70-$1.72, up 13 per cent at the mid-point of the range compared to adjusted EPS of $1.51 in the prior year. The company also updated its expectation for adjusted EBITDA for 2017 to be in the range of $580 -$590 million, up from its prior estimate of adjusted EBITDA at the high end of the $555-$585 million guidance range. Full year capital expenditures are projected to be approximately $100 million. Free cash flow is expected in excess of $450 million for the year compared to its previous estimate of in excess of $425 million. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 18th Feb 2020

Turkey, Pak want to raise bilateral trade volume to $5 bn

Turkey and Pakistan want to raise bilateral commercial and economic...

Pic: Shutterstock

Apparel/Garments | On 18th Feb 2020

Bangladesh RMG exporters expect order shift from Cambodia

Bangladesh's readymade garment (RMG) exporters feel the suspension of ...

Pic: Shutterstock

Textiles | On 18th Feb 2020

IMF says Indian economic environment weaker than projected

There is an urgent need for more ambitious structural and financial...

Interviews View All

Anvita Mehra, Confidential Couture

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Jash Choraria,

Jash Choraria

Established in 2015 by <b>Jash Choraria</b>, Unifynd is a Mumbai-based...

Spring Chang,

Spring Chang

A specialist in manufacturing printing machines, <b>Wenzhou Changs</b>...

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

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

Leave your Comments


February 2020

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


Advanced Search