Gildan Reports Second Quarter Results
In the second quarter, the printwear division reported operating income of $50.1 million, compared with $89.2 million in the second quarter of fiscal 2011. The decline in the results for the printwear segment was due to the impact of higher cotton and other input costs, partially offset by higher unit sales volumes and manufacturing efficiencies.
The company said that industry shipments from U.S. wholesale distributors to U.S. screenprinters are now projected to increase by approximately 5 percent in the second half of the fiscal year compared with the second half of fiscal 2011. The company had previously assumed that total industry shipments in the second half of fiscal 2012 would be unchanged from last year. Shipments in the U.S. wholesale distributor channel in the month of April have continued to be strong, in line with the revised outlook.
The company is assuming a market share of approximately 70 percent in the U.S. distributor channel for the balance of the fiscal year subsequent to the acquisition of Anvil. The company had previously planned to increase its market share to 65 percent due to its organic growth.
Selling prices for the printwear business for the balance of the fiscal year are assumed to be slightly lower than in the second quarter.
The full report is available on Gildan Activewear's website.