Gildan Activewear Inc. reported record-high profits in its latest quarter on strong sales growth that even surpassed 2019 levels.
The Montreal-based manufacturer reported earnings of $188.3 million (all figures US), or a record 95 cents per diluted share in the third quarter. That’s up from US$56.3 million or 28 cents per share a year earlier and 51 per cent above pre-pandemic levels in the third quarter of 2019.
Sales for the third quarter ending October 3, 2021, totalled $802 million, up 33% over the prior year, consisting of activewear sales of $656 million, up 44%, and sales in the hosiery and underwear category of $146 million, in line with the prior year level. The overall sales increase was driven primarily by higher unit sales of activewear and underwear, favourable product mix, as well as lower imprintables promotional spending and accruals.
Excluding one-time items, adjusted profits were US$159.4 million or 80 cents per share, up from US$59.2 million or 30 cents per share in the third quarter of 2020. Revenues for the three months ended Oct. 3 were US$801.6 million, up 33 per cent from US$602.3 million and eight per cent higher than in 2019.
“Our record performance for the third quarter was driven by the improved economics of our business, underpinned by our Back to Basics model, the operational excellence of our team and the ongoing recovery in demand, which drove sales volumes which are now above pre-pandemic levels,” stated CEO Glenn Chamandy. “Further, I feel confident that our team will continue to navigate through the tight supply chain environment, manage inflationary pressures and deliver results for our shareholders as we continue to move forward.”
Year-to-date Operating Results
Net sales for the nine months ended October 3, 2021, of $2,138 million were up 66% over the same period last year, reflecting increases of 81% in activewear sales and 21% in the hosiery and underwear category. The year-over-year increase in activewear sales where we generated sales of $1,738 million was primarily driven by volume increases in all channels and favourable product-mix.