Gildan Publishes Second Quarter 2017 Financial Results
Gildan Activewear (PPAI 250187) has released financial results for second quarter 2017, reporting net sales of $715.4 million, a $26.5 million or 3.8-percent increase compared to the same period in 2016. Sales for the first half of the year were also up, increasing by $98.5 million, or 7.7 percent, compared to $1,380.7 million.
The Montreal-based supplier’s sales increase for the quarter was driven by upticks in sales of 1.9 percent in the printwear segment and 8.1 percent in branded apparel. The company attributes these increases to acquisitions and higher net selling prices, although they were offset in part by lower unit sales volumes of fleece and the impact of unfavorable foreign exchange.
Its net earnings for the quarter were $107.7 million or $0.48 per share on a diluted basis, compared to net earnings of $94.7 million or $0.40 per share in 2016. When the effects of after-tax restructuring and acquisition-related costs are factored out, Gildan’s adjusted net earnings for the quarter were $110.5 million or $0.49 per share on a diluted basis.
Gildan’s Printwear segment turned in net sales of $480.1 million in second quarter. Contributing to this performance were acquisitions, organic unit sales increases in fashion basics, higher net selling prices and increased shipments in international markets. The segment’s operating income for the quarter was $122.1 million, up 10 percent from the same period last year.
The branded apparel segment produced net sales of $235.3 million, compared to $217.6 million in second quarter 2016. The August 2016 acquisition of Peds Legwear contributed approximately $17 million to the segment’s sales growth, along with men’s underwear, although their impact was softened somewhat by lower global lifestyle and Gold Toe branded sock sales. Branded apparel’s operating income in second quarter was $26 million, a 52-percent increase over the $17.1 million generated during the same quarter in 2016.