Montreal-headquartered Top 40 supplier Gildan (asi/56842) reported Wednesday that its overall net sales for the quarter ended April 1 were $647.3 million, a year-over-year decline of 2.7%. While activewear sales, which include American Apparel styles, rose 3.2% in Q1, hosiery and underwear revenues plunged by 20.4%. Sales were down 4.3% in the U.S. and 19.4% in Canada, only partially offset by a 23.8% increase in international revenue.

Other financials were also weaker, including gross margin, which totaled 27.2%, reflecting a 120 basis point decrease “due to the anticipated impact of higher raw material and other input costs, partly offset by higher net selling prices, including foreign exchange and the positive impact of a richer product-mix,” Gildan said.

Operating income was $76.3 million, a decline of 18%, and adjusted operating income was $82.7 million, down by 17% versus the same period in 2017. Gildan, meanwhile, reported net earnings of $67.9 million, down from $83.5 million in Q1 last year, a negative difference of 18.7%. Adjusted diluted EPS in Q1 were down by 12.8% “driven by lower gross profit and higher SG&A expenses, partly offset by lower income tax expense and the benefit of a lower share count compared to the prior year,” Gildan said.

In a statement, Gildan reaffirmed its full-year 2018 financial guidance of adjusted diluted EPS in the range of $1.80 to $1.90 on projected net sales growth in the low to mid-single-digit range, along with adjusted EBITDA in the range of $595 to $620 million. Going forward into Q2, Gildan is planning to continue “to work to increase availability, particularly for certain higher-margin activewear products.” Finally, of note, Gildan’s board of directors declared a cash dividend of $0.112 per share, payable on June 11, 2018, to shareholders of record, current as of mid-May.