Gildan Activewear Q3 sales increase

Gildan Activewear Inc. reported net sales of 850 million dollars, up from 802 million dollars in the third quarter last year.

The results consisted of activewear sales of 742 million dollars, up 13 percent, and sales in the hosiery and underwear category of 108 million dollars, down 26 percent over the prior year.

Gildan generated gross and adjusted gross profit of 252 million dollars in the quarter, down 30 million dollars, while adjusted gross profit was flat year over year. GAAP and adjusted diluted EPS for the quarter 84 cents, down from GAAP diluted EPS of 95 cents but up 5 percent on an adjusted basis.

“The strength of our activewear business, driven by North American imprintables sales, together with the benefits from our vertically-integrated manufacturing model, allowed us to deliver another strong quarter” said Glenn J. Chamandy, Gildan’s president and CEO.

Highlights of Gildan’s year-to-date operating results

Net sales for the nine months ended October 2, 2022, were 2,520 million dollars, up 18 percent over the same period last year, reflecting an increase of 25 percent in activewear sales, partly offset by a decline of 12 percent in the hosiery and underwear category.

For the first nine months of 2022, the company generated gross profit of 758 million dollars, or 30.1 percent of sales compared to 711 million dollars or 33.3 percent of sales for the same period last year. On an adjusted basis, gross profit totaled 756 million dollars or 30 percent of sales compared to 663 million dollars or 31 percent of sales in the same period last year.

GAAP and adjusted net earnings reached 458 million dollars, up 6 percent and 17 percent, respectively, compared to last year. GAAP and adjusted diluted EPS totaled 2.46 dollars, up 13 percent and 26 percent, respectively.

The company’s board of directors has declared a cash dividend of 0.169 cents per share, payable on December 19, 2022 to shareholders of record as of November 23, 2022.