Gildan Activewear Q3 net sales up 12.9 percent

REPORT_ Gildan Activewear, announcing its results for the third fiscal quarter ended July 6, 2014 said that its net

sales amounted to 693.8 million dollars, up 12.9 percent from 614.3 million dollars in the third quarter of fiscal 2013. Net earnings were 116 million dollars or 0.94 dollars per share on a diluted basis. The company has updated its prior guidance range for adjusted EPS for fiscal 2014 and also announced plans for the construction of a new textile facility in the Rio Nance complex in Honduras.

Before reflecting restructuring and acquisition-related costs, adjusted net earnings were 116.6 million dollars or 0.95 dollars per share on a diluted basis. Adjusted net earnings were unchanged compared to the third quarter of fiscal 2013 and were as projected in the company’s most recent EPS guidance. The company is making manufacturing investments to enhance product capabilities and expand production capacity in its sock and textile operations and is training sewing operators to support the rapid growth in branded apparel sales revenues and brand penetration.

The company is currently doubling its underwear capacity to support its planned growth in fiscal 2015. Net sales for the printwear segment amounted to 483.4 million dollars, up 11.6 percent from 433 million dollars in the third quarter of fiscal 2013. Sales to international markets in Europe and Asia-Pacific increased by over 40 percent, partially offset by lower shipments to Mexico compared to last year.

Net sales for branded apparel were 210.4 million dollars, up 16 percent. Higher branded apparel segment net sales reflected sales growth in all product categories, including activewear, underwear and socks, as the company continued to build its brands and gain market share. Strong growth was achieved in sales for both the Gildan and Gold Toe brands and brand extensions, as well as for licensed brands.

Net sales revenue for the first nine months of fiscal 2014 amounted to 1.7 billion dollars, up 8.7 percent from 1.6 billion dollars in the same period last year. Net earnings for the first nine months of fiscal 2014 were 236.9 million dollars, or 1.92 dollars per share on a diluted basis, compared to 223.4 million dollars, or 1.82 dollars per share, up 6 percent and 5.5 percent respectively compared to the first nine months of fiscal 2013.

The company is projecting sales revenues for fiscal 2014 to be slightly in excess of 2.4 billion dollars, including the acquisition of Doris, which the company completed on July 7, 2014. Sales revenues for Printwear are projected to be slightly above 1.55 billion dollars, up approximately 5.5 percent compared with fiscal 2013. Sales revenues for Branded Apparel for fiscal 2014 are projected to be approximately 850 million dollars, up approximately 19 percent compared with fiscal 2013. Adjusted EPS for the full year are now projected to be in the range of 3-3.03 dollars compared to the company’s previous adjusted EPS guidance range of 3-3.10 dollars.

Net sales revenues in the fourth quarter of fiscal 2014 are projected to be in excess of 700 million dollars, up more than 11.8 percent. The company is projecting adjusted EPS for the fourth fiscal quarter of 1.06-1.09 dollars, up 27.7 percent-31.3 percent.