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Canadian firm Gildan's earnings more than triples to $188 mn

11 Nov '21

2 min read

Pic: Gildan Activewear

Gildan Activewear, a Canadian manufacturer of everyday basic apparel, has posted a 33.1 per cent sales jump to $801.6 million (US dollars) in the third quarter (Q3) of FY21 ended on October 3, 2021, against the sales of same period in previous fiscal and 8 per cent over Q3 FY19. The company’s net earnings during the quarter soared 233.9 per cent to $188.3 million (Q3 FY20: $56.4 million).

“Our record performance for the third quarter was driven by the improved economics of our business, underpinned by our Back to Basics model, the operational excellence of our team and the ongoing recovery in demand, which drove sales volumes which are now above pre-pandemic levels,” Glenn Chamandy, Gildan president and CEO, said in a press release.

Gross profit for the three-month period escalated to $281.7 million ($135.5 million), while operating income almost tripled to $201.3 million ($68.8 million).

As for product categories, Gildan said its activewear business saw sales increase of 43.7 per cent to $655.8 million ($456.3 million), while hosiery and underwear sales remained flat at $145.8 million ($146.0 million).

By geography, the best performing region was the US, which grew 32.6 per cent to $685.9 million ($517.1 million). Sales in Canada surged 42.1 per cent to $36.1 million ($25.4 million). Moreover, international sales went up 33.1 per cent to $79.6 million ($59.8 million) during the third quarter.

“The recovery from the pandemic continues to progress well in North America driving positive POS (point of sale) trends compared to pre-Covid 2019 levels. Further, while supply chain tightness in certain areas and rising inflationary pressure are creating headwinds across the industry, we believe our relative positioning is strong given our vertically-integrated manufacturing platform,” Gildan said in its outlook commentary.

“This combined with recent pricing actions implemented in the fourth quarter this year, gives us confidence that we are well positioned to manage through current inflationary pressures and to continue to be in a position to deliver on our operating margin target,” the company added.

Fibre2Fashion News Desk (JL)

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