Apparel supplier Gildan Activewear (asi/56842) reported this morning that its total company revenues for the quarter ended April 5 increased to $636.2 million, up 15.9% year-over-year. Printwear sales rose 14% and branded apparel sales jumped 20%. The company reported a Q1 profit of $56 million or $0.23 per share on a diluted basis. In the first quarter of 2014, Gildan had a $79.2 million profit or $0.32 per share.
“The increase in printwear segment sales in the quarter was due to strong unit sales volume growth in U.S. and international printwear markets and more favorable product-mix,” Gildan said. “The increase in branded apparel sales was due to organic sales growth of Gildan and Gold Toe branded programs, as well as licensed and global lifestyle brands and the acquisition of Doris.”
In Q1, Gildan also said it used $108 million of cash to finance capital expenditures and seasonal working capital requirements. Investments included new yarn-spinning facilities in the U.S. and the expansion of the company’s printwear distribution center in Eden, N.C. The company, though, did announce earlier this month that it will close a Buffalo-area plant, eliminating about 80 jobs. The layoffs are set to go into effect starting June 1. Gildan is providing employees severance packages and help finding new jobs.
In its outlook, Gildan reaffirmed its 2015 forecast for consolidated net sales of approximately $2.65 billion. Analysts generally expect the company to report fiscal year earnings of $1.54 per share on revenue of $2.67 billion.