Home Team apparel Gildan Activewear posts record third quarter results

Gildan Activewear posts record third quarter results

3
0

For the quarter ended October 3, Gildan Activewear recorded a 33% increase in sales compared to the same period last year and an 8% increase compared to the same period in 2019 (before the pandemic).

Revenue of $ 802 million included sportswear sales of $ 656 million, up 44%, and hosiery and underwear category sales of $ 146 million, in line with the level of the previous year.

Gildan said the overall increase in sales was mainly due to higher unit sales of sportswear and underwear, a favorable product line-up, as well as lower promotional expenses and accrued liabilities. for printable products.

Net profit, meanwhile, stood at $ 188 million, up from $ 56 million the year before. Adjusted net income was $ 159 million, up from $ 59 million last time.

Gross margin of 35.1% in the quarter increased 1,260 basis points and adjusted gross margin of 31.4% increased 890 basis points from the third quarter of 2020. Gildan said that The significant improvement in adjusted gross margin was mainly due to a favorable product line. , lower promotional expenses and accrued charges for printables, the impact of the non-recurrence of Covid-related costs incurred last year when facilities were operating below normal capacity utilization levels, as well as the cost benefits resulting from its Back to Basics initiatives.

“Our record performance for the third quarter was driven by the improved economy of our business, supported by our Back to Basics model, the operational excellence of our team and the continued upturn in demand, which resulted in sales volumes which are now higher than before the pandemic. levels, ”said Glenn Chamandy, President and CEO of Gildan.

“In addition, I am confident that our team will continue to navigate the tight supply chain environment, manage inflationary pressures and deliver results for our shareholders as we continue to move forward. . ”


Source link