Gildan Revenues, Profit Jump
Printwear Performed Particularly Well
In its most recent quarter, apparel maker Gildan Activewear said that its revenues increased by 6.4% to reach $666 million in the period. The company also said that its profits jumped by 26.8%, helped by higher sales from both its printwear and branded apparel divisions. The company also said that its revenues in its fiscal 2014 jumped by 8%, reaching a total of $2.36 billion for the full-year, which ended on October 5.
“For the fourth quarter, we have reported record results for any fiscal quarter in the company’s history and earnings-per-share (EPS) growth of 20% compared to Q4 2013,” said Laurence Sellyn, Gildan’s executive vice president and chief financial officer, during a conference call with analysts to announce the company’s financials. “The 20% growth in EPS in the fourth quarter was due to the higher year-over-year sales revenues in both Printwear and branded apparel, as well as higher operating margins in both operating segments.”
In its financial filing, Gildan said it Printwear segment (which is mostly responsible for the company’s sales to apparel suppliers, distributors and decorators) performed particularly well in the most recent quarter. Ultimately, the company said, higher selling prices were to thank for the increases.
“The increase in Printwear net sales was due to higher net selling prices in the quarter and more favorable product-mix, partially offset by weaker demand,” Gildan said in its filing. “In the fourth quarter, the Printwear segment reported operating income of $118.9 million, up 6.2% from $112.0 million in the fourth quarter of fiscal 2013. Operating margins for Printwear were 27.3%, compared with 26.4% in the fourth quarter of last year due to higher net selling prices and more favorable product-mix.”