Gildan Activewear posts Q3 FY20 sales of $602 mn

09 Nov '20

2 min read

Pic: Gildan Activewear

Gildan Activewear, a Canadian manufacturer of branded clothing, posted 18.6 per cent decrease in its sales to $602.3 million during the third quarter (Q3) fiscal 2020 ended on September 27, compared to sales of $739.7 million in the same quarter last year. Company’s net earnings for the quarter were $56.4 million (Q3 FY19: $104.9 million).

“We were pleased with the recovery of our sales and earnings during the third quarter. Retail sales performance was driven by momentum in underwear, and while the lack of large events continues to impact imprintable channels we are nonetheless seeing areas of opportunity,” Gildan president and CEO, Glenn J Chamandy, said in a press release.

Gross profit during Q3 FY20 declined to $135.5 million ($202.7 million). Selling, general and administrative expenses were $61.5 million ($79.0 million). Company’s operating income for the three month period was $68.8 million ($117.9 million).

Sales of activewear products for the reported quarter fell 26.3 per cent to $456.3 million ($619.2 million). Whereas, hosiery and underwear products sales jumped 21.2 per cent to $146.0 million ($120.5 million).

Geographically, sales in US slipped 18.2 per cent to $517.2 million ($632.5 million), while Canada sales were down 6.3 per cent to $25.4 million ($27.1 million). International sales fell 25.3 per cent to $59.8 million ($80.0 million).

“Further, we continue to be pleased with the results we are seeing from our “Back to Basics” strategy as we continue to place a strong focus on meeting our customers' needs and growing market share through simplification of our product portfolios, removal of cost and complexity from our business and fully leveraging our world class, sustainably-focused, vertically-integrated manufacturing platform,” Chamandy said.

Fibre2Fashion News Desk (JL)

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