Q1 earnings up 76% at Gildan
Canadian apparel group Gildan Activewear Inc. has posted improved financial results for its first quarter ended December 30.
First quarter net earnings totalled US$27.5 million, up 76.3% from $15.6 million in the first quarter of 2007. Sales for the quarter, which is seasonally the lowest quarter of the year for activewear sales, amounted to $250.5 million, up 34.8% compared with $185.8 million in the prior-year period. The increase in sales revenues was due to an increase of 92.7%, or $39.4 million, in sock sales due to the acquisition of Prewett and new retail sock programmes obtained in 2007, a 13.7% increase in sales volumes for activewear, and an increase of approximately 2.5% in activewear selling prices.
During the first quarter, the company obtained its first underwear programme with a US mass-market retailer and shipments for this programme are expected to begin in May.
Growth was seen in US markets, as well as in Canada, Europe, Asia/Pacific and Mexico. The company has leased warehouse space in Shenzen, China, in order to support growth in the Chinese market.
