Gildan Activewear FY14 revenues rise 8 percent

REPORT_ Gildan Activewear for its fourth fiscal quarter results ended October 5, 2014 said that sales amounted to 666 million dollars, up 6.4 percent. Net earnings in the fourth quarter of fiscal 2014 were 122.7 million dollars or 1 dollar per share on a diluted basis. Adjusted net earnings were 122.8 million dollars or 1 dollar per share for the fourth fiscal quarter ended October 5, 2014, up 20.4 percent and 20.5 percent respectively.

Consolidated net sales revenues for fiscal 2014 amounted to 2,360 million dollars, up 8 percent from 2,184.3 million dollars in fiscal 2013 reflecting sales growth in all product categories. The increase was primarily attributable to higher unit sales volumes and more favourable product-mix in both operating segments, higher net selling prices in Printwear and the acquisition of Doris which contributed approximately 20 million dollars of sales revenues. Net earnings for fiscal 2014 were 359.6 million dollars or 2.92 dollars per share on a diluted basis.

Net sales for the Printwear segment in the fourth quarter of fiscal 2014 amounted to 435.8 million dollars, up 2.8 percent from 423.9 million dollars in the fourth quarter of fiscal 2013. In the fourth quarter, the Printwear segment reported operating income of 118.9 million dollars, up 6.2 percent. Net sales for Branded Apparel were 230.2 million dollars, up 13.8 percent from 202.2 million dollars in the fourth quarter of last year mainly due to increased sales of underwear and activewear and the acquisition of Doris, partially offset by lower sock sales. Sales of underwear were up by approximately 60 percent.

The company is currently projecting a net loss of approximately 0.30 dollars per share on projected sales revenues of approximately 400 million dollars for the 3-month period ending January 4, 2015, compared with adjusted EPS of 0.35 dollars and sales revenues of 451.4 million dollars in the corresponding calendar quarter of 2013. Sales revenues for Printwear are expected to decline compared to the corresponding quarter of last year. The company is projecting strong organic sales growth in Branded Apparel for the quarter ending January 4, 2015 in addition to the impact of the acquisition of Doris.

For the 12-months ending January 3, 2016, the company’s initial guidance is for adjusted EPS of 3 dollars –3.15 dollars, on sales of close to 2.65 billion dollars, compared to adjusted EPS of 2.94 dollars, on sales of 2.36 billion dollars in fiscal 2014. The company is projecting Printwear sales growth for calendar 2015 of approximately 3 percent compared to fiscal 2014. Sales revenues for Branded Apparel are projected to increase by approximately 30 percent compared to fiscal 2014. Adjusted EBITDA for the year is projected to be approximately 525 –545 million dollars.