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By
Reuters
Published
Aug 12, 2010
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Gildan posts higher Q3 profit on sales volume growth

By
Reuters
Published
Aug 12, 2010

(Reuters) - Canadian clothing maker Gildan Activewear Inc (GIL.TO) posted a higher quarterly profit, helped by strong sales volumes growth and lower spending on promotional activity in the United States.

Gildan Activewear
Gildan.com

Earnings for the Montreal-based company climbed to $64.7 million, or 53 cents a share, for the third quarter ended June 30. This compares with $41.5 million, or 34 cents a share, a year earlier.

Adjusted net earnings, which exclude one-time items, were $66.4 million, or 54 cents a share.

Gildan, which settled a class action lawsuit last week over a 2008 filing, said revenue rose 28 percent to $395.3 million.

The company continues to project sales outlook of $1.3 billion for the year and said shipments in the fourth quarter could be constrained by the current low level of finished goods inventories.

Gildan shares closed at C$31.50 Wednesday on the Toronto Stock Exchange. ($1=1.046 Canadian Dollar)

(Reporting by Ashutosh Joshi in Bangalore; Editing by Maju Samuel)

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