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Gildan Activewear Reports Record Results for the Fourth Quarter and Full Year 2021
Februrary 23, 2022 – Gildan Activewear announced that net sales of $784 million (all figures US) for the fourth quarter ending January 2, 2022, were up 14% over the prior year, consisting of activewear sales of $627 million, up 17%, and sales of $157 million in the hosiery and underwear category, which were up 3% compared to the prior year quarter.
The overall sales increase was largely driven by higher activewear sales volumes and net selling prices, partly offset by weaker product-mix related to the year-over-year timing of fleece sales. The growth in activewear sales volumes reflected the combination of higher point of sales (POS) and to a lesser extent the impact of some distributor restocking in the North American imprintables channel, although inventory levels in the North American imprintables channel continue to remain well below pre-pandemic levels. Compared to 2019, net sales in the quarter were up 19% driven by strong performance in activewear. Sales volume growth in activewear products reflected the continuation of positive sell-through trends in the North American imprintables channel and the impact of the non-recurrence of distributor inventory de-stocking that occurred in the fourth quarter of 2019, as well as higher sales of activewear sold through retail channels. The positive impact of these factors was offset in part by lower international shipments, as international POS levels in the quarter continued to lag pre-pandemic levels given the impact of the Omicron variant and lockdowns in various regions.
Full Year 2021 Results
Gildan recorded record net sales of $2,923 million in 2021, up 48% from the prior year, reflecting increases of 58% in activewear and 16% in the hosiery and underwear category compared to 2020. Sales performance in 2021 reflected a significant recovery in demand from 2020 which was hard hit by the effects of the onset of the COVID-19 pandemic. Compared to 2019, sales growth showed improvement through the year, with sales returning to above pre-pandemic levels in the second half. The year-over-year increase in activewear sales where Gildan generated sales of $2,365 million was due to strong volume increases in all channels, favourable product-mix and higher net selling prices. Higher activewear sales volumes were driven by a strong recovery in POS and the impact of the non-recurrence of significant inventory de-stocking by distributors which occurred in 2020. The overall sales increase in the hosiery and underwear category where we generated $558 million was also driven by higher sales volumes in both underwear and in sock products compared to last year, as well as favourable product mix.
“I am extremely proud of our team’s performance in 2021 which allowed us to capitalize on improving demand and deliver meaningful benefits from our Back to Basics strategy. We ended the year with a strong finish, growing above pre-pandemic levels and setting record results to build on,” said Glenn J. Chamandy, President and CEO of Gildan. “As we look to 2022 and beyond, we are building on our Back to Basics principles and heightening our focus towards the next phase of our journey with our “Gildan Sustainable Growth” plan centered on three key pillars — Enabling growth through Capacity Expansion, Innovation and ESG. By leveraging our competitive advantage as a low-cost vertically integrated manufacturer and executing on projected capacity expansion plans, delivering superior quality, value-driven and innovative products to our customers, and leveraging our strong ESG standing, we are confident that we can drive strong organic revenue growth, profitability and effective asset utilization to deliver strong shareholder value and make meaningful advancements on our ESG priorities.”
New Board Member Appointment
Gildan, today announced the appointment of Dhaval Buch to the Company’s board of directors. With the appointment of Mr. Buch, the Company’s board now comprises eleven members. He will serve on the board’s corporate governance and social responsibility committee.
“Dhaval is an accomplished business leader and his international expertise in supply chain operations and extensive knowledge in sustainable sourcing makes him an ideal addition to our board,” said Gildan’s Board Chairman, Donald C. Berg. “We welcome Dhaval and look forward to his insights as we execute on the next phase of the Company’s growth.”
