Gildan gets Q4 sales bump from T-shirts, reports US$67.6M profit

MONTREAL -- Gildan Activewear Inc. (TSX:GIL) says a 20 per cent increase in Gildan-branded underwear sales and even bigger growth at its printwear segment helped the clothing manufacturer to a US$67.6 million profit in its fourth quarter.

See Full Article

Overall sales were up 39.2 per cent to US$543.8 million, from US$390.6 million a year earlier, and above the company's estimate -- mainly due to unexpectedly high sales of T-shirts made by its printwear segment.

The printwear segment accounted for $284.9 million of sales, up from US$160.3 million in the previous year's fourth quarter, which included a $48-million inventory devaluation that didn't recur. Excluding the inventory markdown, printwear sales were up 37 per cent from the same time last year.

Sales of the higher-margin branded apparel were US$258.9 million, up 12.4 per cent from US$230.3 million. The segment includes sales of Gildan underwear, which had been focus of an ad campaign featuring country singer Blake Shelton.

Gildan's net profit for the quarter ended Jan. 3 -- reported in U.S. currency -- was equal to 28 cents per share, and also 28 cents after adjustments.

In the year-earlier period, Gildan had an unusual quarterly net loss of $41.2 million, or 17 cents per share, and an adjusted loss of $37.6 million or 15 cents per share.

For the coming year, Gildan is projecting between $1.50 and $1.60 per share of adjusted earnings per share -- up from $1.46 last year and $1.14 the previous year. It's estimating 12-month sales for the coming year will be above US$2.6 billion, compared with $2.57 billion for the year ended Jan. 3, 2016, and $2.3 billion a year earlier.

The Montreal-based company -- which has its manufacturing operations outside of Canada -- says its quarterly dividend to shareholders will rise by 20 per cent to 7.8 U.S. cents per share payable April 4.

It has also received approval to repurchase and cancel up to nearly 12.2 million common shares, about five per cent of the public float, over the coming year.



Advertisements

Latest Economic News

  • Loblaws' latest consumer loyalty pitch: $9.99 a month for premium perks

    Economic CBC News
    Loblaws is launching a fee-based subscription program targeting its existing loyalty program members that sweetens the pot for them in terms of rewards, in exchange for an ongoing fee. For $9.99 a month — or $99 a year — a new program the retailer is launching today called PC Insiders will give people who sign up discounts and reward points across many of the chain's stores, both in-person and online. Source
  • Uber Canada's service animal policy criticized by some disability rights advocates

    Economic CTV News
    TORONTO -- Uber Canada has launched a new policy on how its drivers deal with customers who have service animals, but some disability rights advocates say exemptions built into the rules could still lead to discrimination. Source
  • Credit card manipulator reveals point-hogging strategy

    Economic CTV News
    Bank tellers may have rolled their eyes when Avery Campbell started depositing grocery bags full of collectable coins into his account. But he had the last laugh over champagne and caviar while flying first-class to five-star resorts. Source
  • N.B. inks deal with company to provide marijuana for recreational users

    Economic CTV News
    ATHOLVILLE, N.B. -- New Brunswick says it has become the first province to fully secure its supply of recreational marijuana. It announced a memorandum of understanding with Zenabis to provide four million grams of cannabis and derivative products with a retail value of about $40 million. Source
  • Alibaba takes $2.9 billion stake in food retailer

    Economic CTV News
    Alibaba said on Monday it would take a major stake in one of China's top food sellers for US$2.9 billion as the e-commerce giant expands further into the retail world. China's largest e-commerce platform has invested heavily in recent years to connect its online and offline portfolio of businesses, taking stakes in several Chinese grocers, shopping malls, and department stores. Source
  • Nebraska to finally decide on Keystone XL today, the last major hurdle

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Nebraska approves TransCanada Corp.'s Keystone XL pipeline

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Nebraska approves 'alternative route' for TransCanada Corp.'s Keystone XL pipeline

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Nebraska to finally decide on Keystone XL Monday, the last major hurdle

    Economic CBC News
    Nebraska regulators will announce their decision on Monday on whether to approve TransCanada Corp's Keystone XL pipeline route through the state, the last big hurdle for the long-delayed project. Just days ago, TransCanada's existing Keystone system spilled 5,000 barrels in South Dakota and pipeline opponents said the spill highlighted the risks posed by the proposed XL expansion. Source
  • Aurora going ahead with CanniMed offer after failing to reach deal with board

    Economic CTV News
    TORONTO -- Aurora Cannabis Inc. says it's going ahead with plans for an all-stock takeover offer for CanniMed Therapeutics Inc. after failing to reach an agreement with the company's board. The company proposed the deal last week and gave the CanniMed board until Friday to respond. Source