For the first quarter, Gildan Activewear Inc. reported sales of 775 million dollars, up 31 percent over the prior year, consisting of activewear sales of 667 million dollars, up 38 percent and sales in the hosiery and underwear category of 108 million dollars, up 3 percent over last year.
The company said activewear volume growth reflected strong demand in North American markets, particularly in the distributor channel, partly offset by lower international shipments due to ongoing demand weakness in Europe and Asia. In the hosiery and underwear category, higher sales were primarily driven by higher selling prices.
“Record results in the first quarter and a strong start to 2022 reflect the impact of Gildan's Sustainable Growth (GSG) strategy,” said Glenn J. Chamandy, Gildan president and CEO in a release.
Highlights of Gildan's Q1 results
The company generated gross profit of 240 million dollars in the quarter and adjusted gross profit of 239 million dollars, up 28 percent and 30 percent, respectively, over the prior year, driven by the strong growth in sales. Gross margin of 31 percent and adjusted gross margin of 30.9 percent were down year-over year by 100 and 20 basis points, respectively.
The company’s operating income was 162 million dollars or 20.9 percent of sales and adjusted operating income was 158 million dollars or 20.4 percent of sales, in the first quarter of 2022.
The company reported net earnings of 146 million dollars or 77 cents per share on a diluted basis and adjusted net earnings of 144 million dollars or 76 cents per share on a diluted basis, compared to net earnings of 99 million dollars or 50 cents per diluted share and adjusted net earnings of 95 million dollars or 48 cents per diluted share in the first quarter last year.
The company’s board of directors has declared a cash dividend of 169 cents per share, payable on June 20, 2022 to shareholders of record as of May 26, 2022.