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Gildan Activewear updates Q4 earnings guidance
28 Sep '06
3 min read
The Company noted that its guidance for fiscal 2007 does not at this time include the impact of its recent acquisition of Kentucky Derby Hosiery.
The Company is progressing well with its plans for the integration of the acquisition, including the rationalization of Kentucky Derby's manufacturing and distribution operations, and remains confident that it will achieve its target of U.S. $0.30 per share accretion once the integration process is completed during fiscal 2008.
However, Gildan does not have sufficient visibility at this time to provide guidance for the amount of the accretion benefit to be realized during fiscal 2007.
The projected increase in diluted EPS in fiscal 2007 reflects higher unit sales volumes and the impact of manufacturing cost reductions primarily due to the ramp-up of the Dominican Republic textile facility.
These positive factors are partially offset by higher cotton costs, lower selling prices, and higher selling, general and administrative and depreciation expenses.
The initial guidance for fiscal 2007 assumes that unit volumes will increase by approximately 16 percent, not including athletic socks, and that selling prices will decline by approximately 1 percent on average for the fiscal year.
The Company's strategy will be to price aggressively in order to drive continuing volume growth and market share penetration in both the wholesale and retail channels.
The Company is progressing well with its plans for the integration of the acquisition, including the rationalization of Kentucky Derby's manufacturing and distribution operations, and remains confident that it will achieve its target of U.S. $0.30 per share accretion once the integration process is completed during fiscal 2008.
However, Gildan does not have sufficient visibility at this time to provide guidance for the amount of the accretion benefit to be realized during fiscal 2007.
The projected increase in diluted EPS in fiscal 2007 reflects higher unit sales volumes and the impact of manufacturing cost reductions primarily due to the ramp-up of the Dominican Republic textile facility.
These positive factors are partially offset by higher cotton costs, lower selling prices, and higher selling, general and administrative and depreciation expenses.
The initial guidance for fiscal 2007 assumes that unit volumes will increase by approximately 16 percent, not including athletic socks, and that selling prices will decline by approximately 1 percent on average for the fiscal year.
The Company's strategy will be to price aggressively in order to drive continuing volume growth and market share penetration in both the wholesale and retail channels.
Gildan Activewear Inc
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