Gildan Reports Q4 And Full-Year Financials

Branded Apparel Revenues Jumped To $202.2 Million In Q4

GildanApparel manufacturer Gildan Activewear (asi/56842) reported its sales for the quarter ended September 29 increased to $626.2 million, a year-over-year gain of 11.5%. Gildan announced net earnings of $96.8 million, or 79 cents per share, up from $89 million, or 73 cents per share, a year ago. Gross margins were flat, though, at 28.3% because of price pressures and a retail market impacted by heavy discounting.

“The growth in earnings and EPS in the fourth quarter compared to last year was due to strong growth in sales revenues in both the company’s operating segments and lower cotton costs, partially offset by higher selling, general and administrative expenses,” Gildan said, in a statement.

Net sales in Gildan’s printwear segment rose 12.5% to $423.9 million, while branded apparel revenues jumped to $202.2 million in Q4, a 9.4% increase. Also during its fiscal Q4, Gildan generated free cash flow of $111.5 million. For its full fiscal year, Gildan reported sales of $2.18 billion, a 12% rise, and earnings of $320.2 million, or $2.61 per share. Last year, Gildan reported earnings of $148.4 million.

In its forward guidance, Gildan is projecting sales of $450 million in its 2014 Q1, with adjusted earnings of between 33 cents and 35 cents per share – below the expectations of analysts. For full-year 2014, Gildan is forecasting sales of $2.38 billion, affected somewhat by higher short-term cotton prices. Gildan is pledging, at this point, not to raise prices because of those higher costs.

“The first half of the year is expected to be impacted by sequentially higher cotton costs, compared to the fourth quarter of fiscal 2013,” Gildan said. “The increased cotton costs are not currently projected to be passed through into higher net selling prices as cotton costs have recently declined significantly from these levels.”

Montreal-based Gildan, which employs 33,000 people worldwide, sells apparel in the promotional products market through multiple industry suppliers.