Gildan Activewear Inc. reported lower third-quarter earnings that beat analysts’ estimates and forecast its market share would rise next year.
In the three months ended July 5, profits at the Montreal-based T-shirt firm fell 23.8 percent to $41.5 million, or 34 cents a diluted share, from $54.5 million, or 45 cents a share, in the same period during fiscal 2008.
Excluding a restructuring charge of 3 cents a share and income tax benefit of 5 cents a share, Gildan’s earnings per share totaled 32 cents in the quarter. Analysts polled by Yahoo Finance had expected adjusted EPS of 29 cents.
Third-quarter revenues slid 19.2 percent in the three months to $307.8 million from $380.8 million in 2008.
Laurence Sellyn, executive vice president and chief financial and administrative officer, said on a call with investors that unfavorable product mix, increased promotional wholesale activity and exchange rates contributed to lower sales.
While declining to provide specific sales guidance, Sellyn said the company expects revenues to improve in the coming quarters.
“We are actively working on new retail programs, which we are expecting to have a meaningful impact in our sales growth in 2010 compared to 2009,” Sellyn said.
“What will drive our growth will be our own initiatives in terms of market share in our existing markets, international expansion and our major thrust to go into retail,” he added.
Gross margin in the third quarter fell 220 basis points to 24.4 percent from 26.6 percent a year ago. Sellyn said slight reductions in cotton prices would have a positive effect on margins in the first half of 2010.
In the first three quarters of fiscal 2009, net income at Gildan fell 57.5 percent to $52.9 million, or 44 cents a dilute share, from $124.5 million, or $1.02 a share, a year ago. Year-to-date revenues fell 20.4 percent to $736.6 million from $925 million in 2008.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast