Gildan Activewear revenues hit second-quarter high; earnings drop on charges

MONTREAL – Gildan Activewear Inc. says its net income decreased 8.5 per cent to US$99.7 million despite sales reaching a second-quarter record high.

The Montreal-based clothing manufacturer, which reports in U.S. dollars, says it earned 49 cents per diluted share, down from 51 cents per share or $109 million a year earlier.

Excluding restructuring and acquisition-related costs, adjusted net profits rose 3.1 per cent to $115 million or 56 cents per share. That compared with $111.5 million or 52 cents per share in the second quarter of 2018.

Revenues for the period ended June 30 were $801.6 million, up 4.9 per cent from $764.2 million in the prior year. Shirt sales were positive and underwear sales were up more than 50 per cent following the launch of a new private label program with its largest mass retail customer. However, sock sales were down partly the result of the ending of a dollar store program.

Gildan was expected to record 55 cents per share in adjusted profits on $792 million in revenues, according to financial markets data firm Refinitiv.

The company reaffirmed its sales guidance for about a five per cent increase for the year and says its full-year adjusted EPS will come in at $1.95 to $2.00, the higher end of its previously announced range.

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