Gildan Activewear expects improvement
Gildan Activewear is expecting better results for the second half of the year, despite a decline in net earnings and sales during the second quarter.
The company reported net earnings of US$7.1 million for the quarter ended April 5 compared with US$42.1 million in the second quarter of 2008. Net sales totalled US$244.8 million, down 16.7% from $293.8 million in the second quarter of last year, due primarily to a 21.9% decline in activewear sales.
Gross margins in the second quarter were 15.8%, compared with 28.8% dueing the corresponding period last year. However, gross margins are projected to improve in the third and fourth quarters because of more favourable manufacturing and raw material costs (particularly for cotton) and a more favourable product-mix.
