Montreal’s Gildan Activewear reports increased Q2 profit and higher sales

MONTREAL – Gildan Activewear Inc. (TSX:GIL) said Friday it earned a second-quarter net profit of US$79.2 million, up from $72.3 million a year ago.

The maker of maker of t-shirts, socks and underwear, which keeps its books in U.S. dollars, said the profit amounted to 64 cents per diluted share for the quarter, up from million, or 59 cents per share, in the same quarter of 2013.

The results came in at the top end of Gildan’s guidance for a profit between 61 and 64 cents per share.

Net sales increased 4.9 per cent at $548.8 million, compared with $523 million a year ago.

Gildan said the results were boosted by strong growth in sales of underwear to U.S. retailers and increased sales to global lifestyle brands and international printwear markets.

“These positive factors were partially offset by higher cotton costs compared to the second quarter of last year,” the company said.

In its outlook, the company also raised its full-year sales guidance, but reiterated its earlier guidance for adjusted earnings per share.

Gildan said it now expects sales revenue for its full year to be about $2.4 billion, compared with earlier guidance of approximately $2.35 billion.

Adjusted earnings per share for the year are still expected to be in the range of $3 to $3.10, while capital expenditures are expected to be at the high end of its earlier guidance for $300 million to $350 million.

Gildan also said Friday that chief financial officer Laurence Sellyn will remain with the company until the end of the year before retiring. A replacement was not immediately named, but the company said it was confident it had the time to ensure an orderly transition.

Headquartered in Montreal, Gildan has about 29,000 employees worldwide, primarily at its manufacturing facilities in Central America, the Caribbean and Bangladesh.