Montreal - Gildan Activewear has posted record second quarter results as growth in the activewear sector and firm international sales offset a drop in the company's hosiery business.
Posting net earnings for the three months of US$109.0 million, up from $107.7 million in the previous year, the sales increase in activewear was driven by strong shipments of imprintable products, as well as increased shipments to global lifestyle brand customers and retailers.
International sales in the second quarter were up 35.2%, reflecting strong growth momentum across all markets while the increase in activewear sales also reflected higher net selling prices, including the impact of foreign exchange, and favourable product-mix, driven by strong double digit growth in fleece shipments and growth in fashion basics.
The hosiery and underwear category, however, declined 23.8% during the quarter mainly due to the unit volume decline in socks at mass retailers, which are shifting emphasis toward their own private label brands, and lower licensed and Gold Toe brand sales.
Net sales were $764.2 million in the second quarter, an increase of 6.8%.
Gildan also updated its full year 2018 financial guidance and is now projecting adjusted diluted EPS to be in the range of $1.85 to $1.90 compared to its previous guidance of $1.80 to $1.90. Net sales growth is now projected to be in the mid-single-digit range, the upper end of the company's previous range of low to mid-single digit growth.
Gildan said it expects adjusted EBITDA to be in the range of $605 to $620 million compared to $595 to $620 million previously.