Gildan Activewear Announces Record Results for Third Fiscal Quarter
Gildan Activewear, the Canadian apparel manufacturer, has reported record results for the third quarter of 2013. Earnings for the period were $115.8 million, compared to $78.6 million for the same period in 2012. Net sales were $614.3 million, up 2.3 percent from $600.2 million last year.
The company reported that operating income for both its printwear and branded apparel segments, which sell to the promotional industry and retail chains respectively, was in line with expectations. The company said its printwear sales were lower than forecast "due to production capacity constraints which limited the company's ability to fully capitalize on seasonal peak demand for activewear during the third quarter," but that reduced discounts to the industry and lower cotton costs led to balanced figures.
Net sales for printwear were down 3.6 percent at $433 million, despite sales volume increasing 4.1 percent. Branded apparel sales were $181.4 million, up 20.1 percent from the same period in 2012. The sharp rise in branded apparel continues from the second quarter, when Gildan Activewear saw a 27.4 percent increase in the segment.
In May Reuters reported that Gildan Activewear planned to shift its focus away from the private label and printwear markets and toward its fast-growing branded apparel business. The company launched its first Gildan branded underwear program in the third quarter, to complement its Gildan T-shirt and Gold Toe sock labels, and in June, the company acquired screen printer New Buffalo Shirt Company, which it said will "enhance its sourcing solutions" for the business.
The full release is available on Gildan Activewear's corporate website.