Gildan Announces Profit Jump
Buoyed By Lower Cotton Costs, Increased Sales Volumes
T-shirt and apparel provider Gildan Activewear (asi/56842) announced last week that net income in its fiscal third quarter surged 47%, helped by lower cotton costs and increased sales volume. The company further said that it increased its sales in the period ended June 30 by 2.3% to reach $614.3 million in the quarter.
The profit and revenue results helped to push Gildan's (NYSE: GIL) stock price to the highest point it has recorded since the company went public in June 1998. The company's third quarter financial report also confirmed its sales guidance for full fiscal 2013, saying it expects to record overall revenues for the year of more than $2.15 billion, which is in line with analyst expectations.
As part of its expansion strategy, Gildan announced in June its intention to acquire New Buffalo Shirt Factory Inc., a screen printer and apparel decorator. The acquisition marked Gildan's intention to expand its footprint in the decorated apparel business, following its acquisition of Anvil Knitwear (asi/36350) in May 2012.
"The acquisition of New Buffalo Shirt Factory this June provides Gildan Activewear with screen printing and decorating capabilities which will position it to further enhance its sourcing solutions," the company said in its Q3 financial filing last week.