Gildan Activewear Inc., a global manufacturer and marketer of quality family apparel, has recently announced its financial results for the third quarter of the current fiscal year ended October 2, 2016. The company’s consolidated net sales registered a surge of 6 per cent to US $ 715 million, reflecting sales increase of 4.9 per cent in the printwear segment to US $ 461.9 million from US $ 440.5 million in the comparable period last year. Printwear’s operating income totalled US $ 123.4 million as against US $ 124.4 million for the same period last year.
In the period under review, Gildan generated net earnings of US $ 114.4 million as against with last year’s net earnings of US $ 123.1 million.
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As per the release, branded apparel segment in the quarter stood at US $ 253.1 million up by 8.2 per cent from US $ 234.0 million in the third quarter of previous year due to organic unit sales volume growth from increased shelf space and new retail program shipments and a contribution of US $ 9.6 million from the acquisition of Peds.
The company also posted the financial results for the first nine months of FY ’16. Consolidated net sales however plunged 1.4 per cent to US $ 1,997.2 million compared to US $ 2,024.9 million in the same period last year reflecting slight declines in both operating segments contributed by lower net selling prices, the impact of lower distributor inventory replenishment in Printwear, the exit of certain non-core retailer private label programmes and unfavourable product-mix and foreign currency exchange. Also, Gildan generated net earnings of US $ 272.3 million compared to US $ 278.5 million in the same period last year.
The company reiterated its financial outlook for full year. Gildan now projects its consolidated net sales to stand at US $ 2.6 billion in the financial outlook compared to prior guidance of US $ 2.65 billion. Additionally, Printwear sales are expected to reach US $ 1.65 billion while Branded Apparel sales are projected to be US $ 960 million compared to previous guidance of approximately US $ 1.0 billion.
