Gildan Activewear Q3 results miss the mark

By

Jennifer Braun

Published
Nov 3, 2016

Gildan Activewear Inc. announced on Thursday lower than expected results in its third quarter ended October 2, 2016. As a result, the brand has updated its guidance for 2016.
 
Net earnings totaled $114.4 million or $0.49 per share on a diluted basis for the three months, compared with net earnings of $123.1 million or $0.50 per share for the three months ended October 4, 2015.

 
Net sales for the three-month period were $715 million compared to $674.5 million for the same period last year. Gross profit totaled 217.4 million for the three-month period compared to $212 million. Still, year to date net sales and gross profit are lower compared to last year. Consolidated net sales of $1,997.2 million in the first nine months of 2016 were down 1.4 percent compared to $2,024.9 million in the same period last year reflecting slight declines in both operating segments.
 
The company says their Printwear segment were in-line with the Company's expectations, yet their Branded Apparel sales were lower than expected due to the “continued softness in the retail environment, including weak traffic trends and unseasonably warm weather.”

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For full year 2016, the Company expects to achieve adjusted diluted EPS of $1.48-$1.50 compared to its previous projection of $1.50-$1.55. Adjusted EBITDA for 2016 is now estimated to be approximately $530-$535 million compared to the Company's previous projection of approximately $545-$555 million. Consolidated net sales for the year are now expected to be approximately $2.6 billion compared to the Company's prior guidance of approximately $2.65 billion.
 
Gildan is a leading manufacturer and marketer of quality branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear. The Company sells its products under a diversified portfolio of company-owned brands.