Gildan Activewear Posts Record 2nd Quarter
Net sales for the second quarter of fiscal 2010 amounted to U.S. $326.8 million, up 33.5 percent from U.S. $244.8 million in the second quarter of last year. Sales of activewear and underwear were U.S. $273.2 million, up 51.0 percent from U.S. $180.9 million last year, and sales of socks were U.S. $53.6 million, down 16.3 percent from last year, primarily due to the timing of replenishment and the transition to new programs for mass-market retailers, which are expected to benefit sock shipments in the second half of the fiscal year.
The strong recovery in sales of activewear and underwear compared to fiscal 2009 was due to higher market share in the U.S. wholesale distributor channel, the non-recurrence of distributor destocking which occurred in the second quarter of fiscal 2009, a 3.4 percent increase in overall industry demand in the U.S. distributor channel, increased penetration of international and other screen-print markets and the impact of more favorable activewear product-mix, together with significantly increased shipments of underwear and activewear to retail customers. The second quarter of fiscal 2010 was the first quarter since the first quarter of fiscal 2008 to benefit from positive growth in overall industry demand in the U.S. distributor channel. The positive trend in market recovery continued to improve each month during the quarter, with the month of March showing overall industry growth of 8.9 percent. Net selling prices for activewear were essentially flat compared to the second quarter of fiscal 2009.