NEW YORK — Surging sales allowed Gildan Activewear Inc. to easily eclipse analysts’ expectations in the fourth quarter.
For the three months ended Sept. 29, the Montreal-based T-shirt and knitwear manufacturer reported net income of $12.5 million, or 43 cents a diluted share. That compares with last year when the company sustained a net loss of $24.9 million, or 87 cents. Earnings per share overran Wall Street’s forecast by 3 cents.
Last year’s quarterly loss stemmed primarily from $29.1 million in after-tax special charges and adjustments.
Sales for the period bound up 38.8 percent to $102.4 million from $73.8 million a year ago. Figures have been converted from Canadian dollars at current exchange rates.
"We are pleased to have delivered on all of our key performance targets in fiscal 2002," said chief executive officer H. Greg Chamandy in a statement. "We have exceeded our market share and sales growth goals, we have achieved in excess of 30 percent growth in earnings per share, we have continued to lower our cost structure, and we have become a significant free-cash flow generator, while still maintaining a strong growth profile."
Gildan said the higher sales reflected a 26.8 percent increase in unit shipments, combined with a higher value product mix as compared with last year when lower-value T-shirts were in high demand following the events of Sept. 11. Additionally, Gildan benefited from a higher proportion of golf shirts and fleece in its sales mix as compared with the prior-year quarter.
Greater efficiency accruing to the bottom line was evidenced by a 390-basis-point improvement in gross margin to 28.1 percent from 24.2 percent last year.
Overall, for the full fiscal year, last year’s special charges of $31.7 million after-tax allowed Gildan to record an eye-popping 8,048.5 percent increase in net earnings to $42.5 million, or $1.45. Last year, the company had charge-depleted profits of $522,400, or 2 cents.
Sales for the year leapt 19 percent to $384.5 million from $323.2 million.
Looking ahead, the company reiterated its guidance for full-year EPS of $1.66 to $1.73.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye