November 1, 2018 – Gildan Activewear Inc. (GIL: TSX and NYSE) announced during the third quarter, total sales grew 5.3 per cent compared to last year, despite the impact of Hurricane Florence, which limited shipments during September. During the quarter, Gildan also secured a new private label underwear program for 2019 with its largest mass retail customer.
In Q3, sales growth was constrained due to the impact of Hurricane Florence in the month of September, which disrupted the Company’s distribution operations in the Carolinas, impacting overall sales by approximately $30 million in total. Despite this impact, net sales for the third quarter ended September 30, 2018 of $754.4 million were up 5.3 per cent compared to the prior year driven by a 12.1 per cent increase in activewear sales, partly offset by a 16.6 per cent decline in the hosiery and underwear category.
The increase in the activewear category, which generated $612.4 million in sales for the quarter – including a 27.6% increase in international sales – was driven by higher unit sales volume and net selling prices.
Net earnings for the three months ended September 30, 2018 amounted to $114.3 million, or $0.55 per share on a diluted basis, compared with net earnings of $116.1 million, or $0.52 per share on a diluted basis, for the same period last year.
Year-to-date results
Net sales of $2,165.8 million for the nine months ended September 30, 2018 were up 3.3 per cent, or $68.7 million, compared to the same period last year, driven by an 11.0 per cent increase in activewear sales, partly offset by a 20.4 per cent decline in the hosiery and underwear sales category.
Net earnings for the first nine months of 2018 were $291.2 million, or $1.37 per share on a diluted basis, compared to net earnings of $307.4 million, or $1.36 per share on a diluted basis, for the same period last year. Before reflecting after-tax restructuring and acquisition-related costs, adjusted net earnings for the first nine months of 2018 were $304.2 million, or $1.43 per share on a diluted basis, compared to adjusted net earnings of $319.3 million, or $1.41 per share on a diluted basis, in the same period last year.
Outlook
Gildan narrowed its projected adjusted diluted EPS range for the full year to $1.85 to $1.87, within its previous range of $1.85 to $1.90. The company continues to project net sales growth for the full year to be in the mid-single digit range driven by expected double digit growth in activewear sales.
For the full press release, please visit http://www.gildancorp.com/press-releases