• Home
  • News
  • Business
  • Gildan Activewear net sales decline 13.5 percent

Gildan Activewear net sales decline 13.5 percent

By Prachi Singh

loading...

Scroll down to read more

Gildan Activewear reported a net loss of 41.2 million dollars or 0.34 dollars per share on a diluted basis for the three months ended January 4, 2015, compared with net earnings of 41.7 million dollars or 0.34 dollars per share for the three months ended December 29, 2013. Before reflecting restructuring and acquisition-related costs in both years, the Company reported an adjusted net loss of 37.6 million dollars or 0.31 dollars per share. Consolidated net sales in the fourth calendar quarter of 2014 amounted to 390.6 million dollars, down 13.5 percent from 451.4 million dollars in the same period, last year.

The company’s updated sales and earnings guidance for the 12 months ending January 3, 2016 includes the impact of the acquisition of Comfort Colors, which the company announced along with the earnings results. The in-year EPS accretion in the balance of calendar 2015 from the acquisition of Comfort Colors is projected to be approximately 0.05 dollars. The earnings impact of the acquisition of Comfort Colors is projected to be offset by the impact of the rapid decline in international currencies relative to the US dollar. The Company expects to resume its trajectory of EPS growth in the second half of the calendar year, when it begins to benefit from manufacturing cost savings from its yarn-spinning investments and other capital investment projects, and fully benefits from the decline in cotton costs.

The company is projecting adjusted EPS of 0.46 dollars to 0.48 dollars for the March quarter, on projected sales revenues in excess of 630 million dollars, compared with EPS of 0.64 dollars on sales revenues of 549 million dollars in the corresponding quarter of the prior year. The company continues to feel confident in its outlook for positive earnings momentum in the second half of calendar 2015. It expects to benefit in calendar 2016 from continuing volume growth and further significant manufacturing efficiencies, including the benefit of ramping up the Company’s new yarn-spinning facilities. In addition, the company currently expects that printwear selling prices will continue to be in better alignment with cotton costs.

Gildan Activewear