Gildan Reports Record Quarter
Profits Grew 18% Compared To Same Quarter Of Previous Year
Apparel supplier Gildan Activewear (asi/56842) announced last week that its revenues increased by 7.3% in its fiscal first quarter of 2014, which ended December 29. Further, the company said that its profits in the period grew by 18% when compared to the same time period a year ago. In the time period, the company had $451.4 million in revenue and $41.7 million in profits, which was a first quarter record for Gildan.
The company attributed the earnings growth to improved sales in its printwear and branded apparel segments, partially offset by higher selling, general and administrative expenses. Net printwear sales increased 7.4% to $261.8 million as unit sales volumes increased 5.9. Sales in Gildan’s branded apparel segment were up 7.1% in the period to $189.6 million on strong consumer demand for its Gildan branded underwear and market gains for its Gold Toe branded socks. The gains were offset by lower sales of private label programs as retails market conditions were weak in the holiday season.
In its financial filing, Gildan also confirmed its profit and revenue outlook for fiscal 2014, saying that it expects to reach $2.35 billion in sales for the full year. “I think that as we go forward, our momentum is accelerating,” Glenn Chamandy, Gildan’s president and CEO, said on a conference call with analysts. “As we move into 2015, not only we are going to benefit from the spillover from 2014, but we will have greater opportunities with all the momentum we have developed over the last two years.”