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

  • Ikea readies its first East Coast store, touted as Canada's most sustainable

    Economic CTV News
    HALIFAX - Ikea is getting ready to officially open its first Atlantic Canadian store this week as thousands from across the region are expected to descend upon the popular Swedish furniture chain's new Halifax-area location. Source
  • Striking GM CAMI workers awaiting response to weekend contract proposal

    Economic CTV News
    TORONTO -- The union representing 2,500 striking workers at GM Canada's CAMI assembly plant in Ingersoll, Ont., says the company has yet to respond to a comprehensive proposal put forward on the weekend. Unifor spokesman Mike Van Boekel says he expects it will take General Motors of Canada, which owns the plant, about a day to analyze the costs of the proposal. Source
  • Trudeau urges Canadian companies to seek fortune in China's $5 trillion market

    Economic CTV News
    TORONTO -- Prime Minister Justin Trudeau is urging Canadian small- and medium-sized businesses to look beyond Canada's borders and explore the US$5 trillion retail opportunity in China. Trudeau is speaking at a Toronto conference today hosted by Chinese e-Commerce giant Alibaba, with politicians from all three levels of government in attendance. Source
  • American business group says loss of free trade with U.S. would be a big concern

    Economic CTV News
    OTTAWA - A new report says potential changes to NAFTA and a loss of free trade with the United States represent the biggest concerns for a number of big American firms operating in this country. Source
  • French truck drivers block roads to protest labour changes

    Economic CTV News
    PARIS -- French truck drivers staged road blockages near fuel depots across the country Monday to protest against President Emmanuel Macron's changes to labour laws. Two major unions, CGT and FO, called a nationwide protest action because they fear the new rules Macron formally signed last week will lead to a deterioration in working conditions and ease the firing of workers. Source
  • Alibaba launching payment processing service AliPay in Canada

    Economic CBC News
    E-commerce giant Alibaba.com is launching its mobile payment service AliPay in Canada. The service allows Alibaba customers to use AliPay to easily pay Canadian merchants who sign up for the program. Alibaba is by far the most popular online sales website in China, and AliPay allows Chinese customers to buy products from abroad without any difficulties with currency conversion. Source
  • New Uber CEO apologies for company's past mistakes, vows change

    Economic CBC News
    The new CEO of Uber offered contrition for past mistakes on Monday, just days after London's transport authority said it would scrap the company's operating license. Dara Khosrowshahi issued a letter to London's Evening Standard newspaper acknowledging the company "has got things wrong along the way" as it expanded. Source
  • Uber CEO apologizes to London users for company's mistakes

    Economic CTV News
    LONDON -- The new CEO of Uber offered contrition for past mistakes on Monday, just days after London's transport authority said it would scrap the company's operating license. Dara Khosrowshahi issued a letter to London's Evening Standard newspaper acknowledging that the company "has got things wrong along the way" as it expanded. Source
  • Cenovus reaches agreement to sell Suffield assets for $512M

    Economic CTV News
    CALGARY - Cenovus Energy Inc. (TSX:CVE) says it has reached an agreement to sell its Suffield crude oil and natural gas operations in southern Alberta to International Petroleum Corporation for $512 million in cash. A release from the Calgary-based oilsands company says the sale, which includes Cenovus' properties on Canadian Forces Base Suffield and the adjacent Alderson property, is expected to close in the fourth quarter, subject to closing conditions. Source
  • NAFTA talks becoming 'a little more heated,' says Canada's chief negotiator

    Economic CBC News
    U.S. trade negotiators will only partially unveil new text on modifying a key chapter on investment under NAFTA, two well-placed sources said on Sunday, underlying the cautious pace of talks that are supposed to wrap up by the end of the year. Source