MONTREAL – Gildan Activewear Inc. (TSX:GIL) says a 20 per cent increase in Gildan-branded underwear sales and even bigger growth at its printwear segment helped the clothing manufacturer to some US$67.Six million profit in its fourth quarter.
Overall sales were up 39.2 percent to US$543.8 million, from US$390.6 million a year earlier, and over the company’s estimate – mainly because of unexpectedly high sales of T-shirts produced by its printwear segment.
The printwear segment taken into account $284.9 million of sales, up from US$160.3 million in the previous year’s fourth quarter, which included a $48-million inventory devaluation that didn’t recur. Excluding the inventory markdown, printwear sales were up 37 per cent from the same time this past year.
Sales of the higher-margin branded apparel were US$258.9 million, up 12.4 per cent from US$230.3 million. The segment includes sales of Gildan underwear, that’s focus of an advertising campaign featuring country singer Blake Shelton.
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Gildan’s net gain for the quarter ended Jan. 3 – reported in U.S. currency – was equal to 28 cents per share, and also 28 cents after adjustments.
In the year-earlier period, Gildan had a unique quarterly net lack of $41.2 million, or 17 cents per share, as well as an adjusted loss of $37.6 million or 15 cents per share.
For the coming year, Gildan is projecting between $1.50 and $1.60 per share of adjusted earnings per share – up from $1.46 last year and $1.14 the previous year. It’s estimating 12-month sales for that coming year will be above US$2.6 billion, in contrast to $2.57 billion for that year ended Jan. 3, 2016, and $2.3 billion last year.
The Montreal-based company – that has its manufacturing operations beyond Canada – says its quarterly dividend to shareholders will rise by 20 percent to 7.8 U.S. cents per share payable April 4.
It has also received approval to repurchase and cancel as much as nearly 12.Two million common shares, about five percent from the public float, within the coming year.
