Home / Knowledge / News / Apparel/Garments / Gildan sales up 5% to $802 mn in Q2 2019

Gildan sales up 5% to $802 mn in Q2 2019

07
Aug '19
Pic: Gildan Activewear
Pic: Gildan Activewear
Gildan Activewear, a leading manufacturer of everyday basic apparel, has recorded sales of $802 million in Q2 2019, up 5 per cent from Q2 2018. It generated GAAP diluted EPS of $0.49, and adjusted diluted EPS of $0.56, up 8 per cent over prior year quarter. Net sales for six months ending June 30, 2019 totaled $1,425.6 million, up 1 per cent from $1,411.5 million for same period last year.

Underwear sales of Gildan grew more than 50 per cent in Q2 over the prior year quarter, reflecting the successful launch of its new private label men's underwear programme with its largest mass retail customer. The company recorded activewear sales of $665.6 million, up 6.5 per cent compared to the second quarter of 2018, partly offset by a 2.2 per cent decline in the hosiery and underwear category where the company generated $136.0 million in overall sales.

In H1, activewear sales increased by 1.7 per cent to $1,159.2 million, partly offset by a 2 per cent decline in the hosiery and underwear category. The growth in activewear was mainly driven by favourable product-mix, particularly from fleece sales and higher net selling prices, partly offset by lower unit sales volumes of basics. The decline in the hosiery and underwear sales category was mainly due to lower unit sales of socks, including the impact of its exit of a sock programme in the dollar channel, mostly offset by higher underwear sales and more favourable product-mix.

With results for the first half of 2019 tracking well within the company's expectations, the company has reconfirmed its 2019 full year sales guidance projecting sales growth in the mid-single-digit range and updated its full year EPS and adjusted diluted EPS guidance to the upper half of the ranges previously provided. The company is now projecting 2019 GAAP diluted EPS of $1.80 to $1.85 and adjusted diluted EPS of $1.95 to $2.00, compared to its previous guidance range projecting GAAP EPS of $1.75 to $1.85 and adjusted diluted EPS of $1.90 to $2.00.

For the third quarter of 2019, the company is projecting sales growth to be in the mid-single-digit range, lower than previously anticipated due to revised timing of fleece sales. The company now expects to deliver more fleece than previously projected in the fourth quarter as it continues to ramp up production.

"We have good order visibility for fleece products for the second half of the year and are improving our fulfillment capability for these high-margin products as we move into the fourth quarter. With lower than previously anticipated fleece sales in the third quarter combined with the impact of continued gross margin pressure from higher raw material and other input costs, as previously communicated, we now expect adjusted EPS growth to be flat in the third quarter. For the fourth quarter of 2019, we are projecting strong sales and adjusted EPS growth, aligning to our updated full year guidance.  We continue to project solid gross margin expansion in the fourth quarter as increases in raw material and other input costs subside and projected cost benefits from our manufacturing initiatives start to flow through, positioning us with strong momentum heading into 2020," said Gildan in a press release. (PC)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Sep 2020

ICSA plans to chart way forward for wool in Ireland

The Irish Cattle and Sheep Farmers' Association recently held...

Pic: Centric Brands

Retail | On 22nd Sep 2020

Centric Brands confirms reorganisation plan

US-based Centric Brands Inc. recently announced that the US...

Pic: Cone Denim

Textiles | On 22nd Sep 2020

Cone Denim joins hands with Oritain for traceability

Cone Denim, a global leader in denim authenticity and sustainable...

Interviews View All

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Vasanth Kumar, Max Fashion India

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Lukas Hartmann,

Lukas Hartmann

Intex Consulting GmbH is a completely integrated enterprise resource...

KK Lalpuria,

KK Lalpuria

Indo Count Industries is an India-based home textile company engaged in...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

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

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


September 2020

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


Advanced Search