ATLANTA — While Gildan Activewear Inc. doubled its diluted earnings per share in the second quarter ended March 30, the Montreal-based company fell 8 cents short of its guidance provided on Jan. 30, which it blamed on retail integration issues and lower than expected unit sales growth in activewear.
Net income in the quarter nearly doubled to $41.7 million in U.S. dollars, or 34 cents per diluted share, from $21.1 million, or 17 cents per diluted share in the second quarter of 2007. Results for the quarter included various charges, including $800,000 to reflect ongoing carrying costs for Canadian and U.S. manufacturing facilities.
The growth in earnings per share, Gildan said, was due to more favorable unit sales volume, selling prices and product mix for activewear.
Sales increased 26.5 percent to $293.8 million from $232.1 million. The rise in sales revenue was due to an increase of 98.4 percent in sock sales because of the acquisition of V.I. Prewett & Son last year and new retail sock programs obtained in fiscal 2007, a 7.5 percent increase in unit volumes for activewear, an approximately 3 percent increase in activewear unit selling prices, and a more favorable activewear product mix.
Growth in activewear unit volume was constrained by lower than anticipated production, including delays in the introduction of new high-value ring-spun T-shirt and sport shirt products at Gildan’s textile facility in the Dominican Republic.
Gildan credited its growth in activewear unit sales to continuing market share penetration in fleece and T-shirts in the U.S. wholesale distributor channel. The company said it achieved record market shares in the two categories during the second quarter of fiscal 2008.
Gildan has lowered its adjusted diluted earnings per share guidance for the full year to a range of $1.45 to $1.50 from its previous projection of $1.85 to $1.90. Net earnings in fiscal 2007 were $1.29 per share.
“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