Home / Knowledge / News / Apparel/Garments / Gildan Activewear EPS up 6.1% q-o-q in Q2FY18

Gildan Activewear EPS up 6.1% q-o-q in Q2FY18

Aug '18
Courtesy: Gildan Activewear
Courtesy: Gildan Activewear
Gildan Activewear has reported adjusted EPS of $0.52 per share on a diluted basis for the second quarter of 2018, up 6.1 per cent from $0.49 per share on a diluted basis in the same quarter last year. The increase was mainly due to higher sales and the benefit of a lower share count compared to the prior year, partly offset by a lower operating margin.

The net sales of Canada-based company were $764.2 million in the second quarter, up 6.8 per cent compared to the prior year driven by a 17.3 per cent increase in activewear sales. The increase in activewear was driven by strong shipments of imprintable products, as well as increased shipments to global lifestyle brand customers and retailers. International sales in the second quarter were up 35.2 per cent, reflecting strong growth momentum across all markets.

Net sales of $1,411.5 million for the six months ended July 1, 2018 were up $30.8 million, or 2.2 per cent compared to the same period last year. The sales increase was driven by a 10.5 per cent increase in activewear sales, partly offset by a 22.2% decline in the hosiery and underwear sales category.

As a percentage of sales, SG&A expenses for the second quarter were 12.0 per cent, down 50 basis points from the prior year quarter.  The improvement was mainly due to the benefit of cost reductions resulting from the company's recent organisational consolidation, which more than offset increased costs related to the enhancement of the company's e-commerce and distribution capabilities.

SG&A expenses as a percentage of sales for the first half of the year were 13.1 per cent slightly up from 12.9 per cent in the same period last year, primarily due to planned increases in expenses related to the enhancement of e-commerce and distribution capabilities, partly offset by cost reductions resulting from the company's recent organisational consolidation.

For the second quarter of 2018, the company generated operating income of $121.0 million and adjusted operating income of $124.0 million, flat compared to the same period last year. Operating margin of 15.8 per cent and adjusted operating margin of 16.2 per cent were both down 110 basis points compared to the second quarter of 2017 reflecting the decline in gross margin partly offset by SG&A leverage.

For fiscal 2018, diluted EPS is likely to be in the range of $1.85 to $1.90 compared to its previous guidance of $1.80 to $1.90. Net sales growth is now projected to be in the mid-single-digit range, the upper end of the company's previous range of low to mid-single digit growth. The company expects adjusted EBITDA to be in the range of $605 to $620 million compared to $595 to $620 million previously, and free cash flow for 2018 is now expected to be in excess of $425 million for the year, higher than its previous estimate of in excess of $400 million. Guidance for capital expenditures remains at approximately $125 million for 2018. (RR)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 5th Aug 2020

Procure garments, textiles from domestic firms: Ghana prez

Ghanaian President Nana Addo Dankwa Akufo-Addo recently directed all...

Pic: Shutterstock

Apparel/Garments | On 5th Aug 2020

New COVID-19 wave to threaten Vietnamese garment sector

A fresh wave of COVID-19 may worsen the situation of Vietnam's...

Pic: Shutterstock

Fashion | On 5th Aug 2020

Ralph Lauren Q1 FY20: revenues $487 mn; net loss $128 mn

Ralph Lauren Corporation, a leading designer of of premium lifestyle...

Interviews View All

C Kamatchisundaram, Voltas

C Kamatchisundaram

ITME is an occasion not only to receive new leads but also to work on...

Representatives, Textile & apparel industry

Textile & apparel industry

GST is a complicated and lengthy process

Textile industry, Head honchos

Textile industry
Head honchos

Athleisure is the current buzzword in fashion

Simon Daplyn,

Simon Daplyn

Switzerland-based Sensient Imaging Technologies is a pioneer with a global ...

Valter De Carli,

Valter De Carli

Savio Macchine Tessili is at the head of a group that holds a know-how of...

Jash Choraria,

Jash Choraria

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

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Samar Firdos, Arvind Ltd

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2020

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

Advanced Search