The retailer is looking for the activewear addition and investments in online shopping to improve traffic and lift sales.
Shares of the company fell sharply after the retailer’s outlook disappointed and weakness persisted.
Gildan executives said American Apparel can make good on their $88 million investment in the brand.
The company posted a $7.3M gain in connection with a settlement over unearned incentive compensation from former ceo Neil Cole.
The Victoria’s Secret chain saw a 20 percent comp decline in February.
While analysts said there were some positives during the quarter, top-line growth remained challenged.