May 9, 2016
Gildan’s net earnings up 12.9% in Q1 2016
May 9, 2016
Canadian branded apparel supplier, Gildan Activewear reported rise of 12.9 per cent in net earnings to $63.2 million in the first quarter of 2016, ended April 3, as compared to $56 million in the corresponding quarter last year, despite a fall in net sales.
The company reported a fall of 6.7 per cent in net sales in Q1 of 2016 to $593.3 million as compared to $636.2 million in the first quarter of 2015, ended April 5 of last year.
The rise in net earnings was attributed to cost savings in manufacturing because of the company’s constant investment in vertical manufacturing, including its yarn spinning initiative, and lower input costs and raw material costs.
Adjusted net earnings rose 20 per cent at the company to $69 million as compared to $57.5 million in the previous quarter.
Diluted earnings per share stood at $0.26 in Q1 of 2016 as compared to $0.23 in the prior quarter.
The company expects net sales in excess of $2.6 billion for the full-year of 2016. Printwear sales are likely to be in excess of $1.6 billion, while branded apparel sales are likely to be in excess of $1 billion.
The guidance does not include the acquisition of Alstyle, to be completed by the end of June 2016.
It will revise its guidance after the completion of the acquisition.
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