Montreal based Premium quality branded clothing maker Gildan Activewear Inc announced its financial results for the third quarter and nine months ended July 3, 2005. The Company also reconfirmed its recently increased earnings guidance for the balance of the fiscal year, and announced its capital expenditure and capacity expansion plans for fiscal 2006.
Third Quarter Sales and Earnings
Gildan reported third quarter net earnings of U.S. $34.1 million or U.S. $0.57 per share, up respectively 30.2 percent and 29.5 percent from the third quarter of last year. Gildan had announced on July 12, 2005 that it expected E.P.S. for the third quarter to be at least 10 percent above the top end of its previous guidance for the third quarter, which had called for E.P.S. of approximately U.S. $0.50 per share. Gildan's third quarter results were a record for the Company for any fiscal quarter.
Compared to last year, the increase in third quarter net earnings was driven by continuing strong growth in unit volume sales, more favourable product-mix and lower costs of cotton. These positive factors were partially offset by lower selling prices, increased costs for transportation, and higher selling, general and administrative expenses.
Sales in the third quarter amounted to U.S. $198.9 million, up 18.1 percent from the third quarter a year ago, reflecting a 15.3 percent increase in unit shipments and more favourable product-mix, partially offset by lower selling prices. The Company continued to achieve strong market share increases in all product categories, in spite of capacity constraints which restricted its ability to maximize sales growth in the quarter.
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