Gildan reports 20 percent sales growth

Sales for the second quarter ending July 3, 2022 at Gildan Activewear Inc., of 896 million dollars, were up 20 percent over the prior year, consisting of activewear sales of 758 million dollars, up 27 percent and sales in the hosiery and underwear category of 138 million dollars, down 8 percent over the prior year.

Net sales for the six months were 1,670 million dollars, up 25 percent over the same period last year, reflecting an increase of 32 percent in activewear sales, partly offset by a decline of 4 percent in the hosiery and underwear category.

“We are pleased with our record sales and earnings for the quarter, underpinned by the Gildan sustainable growth strategy, including our focus on innovation and ESG,” said Glenn J. Chamandy, Gildan president and CEO, adding, “Furthermore, our first half performance points to the tight control we currently have over our supply chain and cost structure, which puts us in a good position to support our customers' demand as we move through the remainder of the year.”

Review of Gildan’s results in Q2 and H1

During the second quarter, the company generated gross and adjusted gross profit of 265 million dollars, compared to gross profit of 241 million dollars and adjusted gross profit of 228 million dollars in the prior year quarter.

Gildan generated operating income of 174 million dollars or 19.4 percent of sales in the quarter and adjusted operating income of 176 million dollars or 19.6 percent of sales compared to operating income of 160 million dollars or 21.4 percent of sales, and 149 million dollars or 19.9 percent of sales, on an adjusted basis last year.

For the first half of 2022, Gildan generated gross profit of 505 million dollars or 30.3 percent of sales compared to 429 million dollars or 32.1 percent of sales for the same period last year. On an adjusted basis, gross profit totaled 504 million dollars or 30.2 percent of sales compared to adjusted gross profit of 412 million dollars or 30.8 percent of sales in the first six months of 2021.

On a year-to-date basis, operating income was 336 million dollars, up from 273 million dollars and on an adjusted basis 334 million dollars, up from 259 million dollars last year driven primarily by the 25 percent year-to-date increase in sales.

Operating margin was 20.1 percent for the first half of the year, down 40 basis points over last year. Adjusted operating margin of 20 percent, improved 60 basis points from 19.4 percent in the first half of 2021.

The company’s board of directors has declared a cash dividend of 169 cent per share, payable on September 19, 2022 to shareholders of record as of August 25, 2022.