Tuesday, Canadian basic apparel manufacturer Gildan Activewear Inc. (GIL,GIL.TO) announced a surge in profit for the first quarter, helped by strong growth in activewear unit sales volumes, more favourable manufacturing, cotton and energy costs, and more favorable activewear product-mix. Earnings per share results for the quarter came in above the Street estimate, as did revenues. Looking ahead, the company reaffirmed it fiscal 2010 outlook.
The Montreal, Quebec-based company reported net income for the first quarter of US$28.0 million or US$0.23 per share, compared to US$4.4 million or US$0.04 per share in the year-ago quarter.
Adjusted net income amounted to US$29.2 million or US$0.24 per share, compared to US$5.3 million or US$0.04 per share in the first quarter of fiscal 2009.
On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.22 per share for the quarter. Analysts estimates typically exclude special items.
The company said that the significant increase in net income in the first quarter compared to last year was due to strong growth in activewear unit sales volumes, more favourable manufacturing, cotton and energy costs, and more favorable activewear product-mix.
Net sales for the quarter increased 19.8% to US$220.4 million from US$184.0 million in the prior-year quarter. Ten analysts had a revenue consensus of US$207.00 million for the first quarter.
Product-wise, sales of activewear and underwear were US$152.9 million, up 32.0% from last year. Sales of socks declined to US$67.5 million from US$68.2 million last year.
Selling, general and administrative expenses grew to US$34.0 million from US$33.5 million in the first quarter of fiscal 2009, due to the impact of the higher-valued Canadian dollar on corporate administrative expenses and higher performance-driven variable compensation expenses.
Looking ahead to fiscal 2010, the company reaffirmed its earlier guidance, continuing to project full year sales revenues in excess of US$1.2 billion, up about 17% compared with fiscal 2009.
Analysts currently expect revenues of US$1.40 billion for fiscal 2010.
Further, the company has increased its capital expenditure forecast for fiscal 2010 to about US$145 million from US$130 million projected earlier.
GIL closed Tuesday's regular trading session at US$22.47, up US$0.41 on a volume of 1.06 million shares, higher than the three-month average volume of 0.47 million shares. However, the stock lost US$0.05 or 0.21%, and traded at US$22.42 in the after hours. On the Toronto Stock Exchange, GIL.TO closed Tuesday's regular trading session at C$23.92, up C$0.22 or 0.93% on a volume of 0.86 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.