Gildan sales rise in third quarter as earnings fall almost 19 per cent

MONTREAL – Gildan Activewear Inc. says it earned US$153 million or 84 cents per diluted share in its third quarter, down 18.7 per cent from the same time last year.

The Montreal-based clothing maker, which reports in U.S. dollars, reported its net sales were up six per cent in its latest quarter, at $850 million compared with $801.6 million a year earlier.

Gildan says its sales growth was offset by lower gross and adjusted margins compared to last year, due to higher raw material and other manufacturing costs and a net insurance gain in 2021.

The company’s year-to-date sales are up 17.9 per cent compared with the same period in 2021, while its year-to-date earnings are up 5.6 per cent.

The company says activewear sales, which make up the bulk of overall sales, were up 13 per cent, while hosiery and underwear were down 25 per cent.

Gildan says the increase in activewear sales was due to higher net selling prices, partly offset by lower sales volumes amid weakened retail demand.

This report by The Canadian Press was first published Nov. 3, 2022.

Companies in this story: (TSX:GIL)