Gildan Activewear Inc. increased its second-quarter profits at a nearly double-digit pace despite higher cotton costs that drove down its gross margin.The Montreal-based knitwear and underwear firm also said that it will build a new textile facility in the province of Guanacaste in northwestern Costa Rica, close to its sewing plants in Nicaragua and positioned to allow for duty- and quota-free access to the major markets it serves in the U.S.In the quarter ended March 30, net income expanded 9.5 percent to $79.2 million, or 64 cents a diluted share, from profits of $72.3 million, or 59 cents, in the year-ago quarter.Revenues rose 4.9 percent, to $548.8 million from $523 million, as printwear sales were up 2.9 percent to $378.5 million and branded apparel expanded 9.9 percent to $170.3 million.RELATED CONTENT: WWD Earnings Tracker >>The firm fell just short of analysts’ consensus estimates for revenues of $555.2 million while beating earnings per share estimates of 63 cents.Gross margin dropped to 27.9 percent of sales from 28.9 percent in the second quarter of 2013 “as the impact of higher cotton costs compared to last year was only partially passed through into higher net selling prices in printwear, and selling prices for branded apparel were not increased,” the company said.In a conference call to discuss the results, Glenn Chamandy, president and chief executive officer, said the company would have more details on its Costa Rica textile facility when it reports third-quarter results in August. “The plan is for us to start construction in 2014 and then obviously bring the facility on sometime in 2016,” he said.“We need to bring incremental capacity on prior to Costa Rica.... We need to have installed capacity in 2015 to support our growth for 2016 on the momentum we have,” he added.Gildan said in September that it would spend more than $200 million this year and in 2015 for the construction and ramp-up of two new yarn-spinning facilities in the southern U.S. in addition to a ring-spun yarn-manufacturing facility in Salisbury, N.C., and the modernization of open-end spinning facilities in Clarkton, N.C., and Cedartown, Ga.Gildan expects capital expenditures this year to total between $300 million and $350 million, with about half dedicated to the new yarn-spinning capacity, according to Laurence Sellyn, chief financial and administrative officer. The firm is also investing in several of its existing facilities in Central America.Sellyn will retire from Gildan at the end of the year after more than 15 years as cfo. The company expects his successor to be appointed prior to his departure.In the first six months of the year, Gildan’s net income increased 12.4 percent, to $120.9 million, or 98 cents a diluted share, while revenues grew 6 percent to $1 billion. The company maintained its guidance for full-year adjusted EPS of between $3 and $3.10 a diluted share but raised revenue expectations to about $1.55 billion, up from $1.5 billion previously projected.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim