Gildan Activewear stock declined almost 8.1 percent to sell at $32.25 in early trading after the company missed earnings and revenue estimates and guided down on earnings projections once again.

The company delivered net earnings of $99.4 million or 41 cents a share, down from last year’s earnings for the same period of $116 million or 47 cents. Gildan was affected by weakness in the euro versus strength in the U.S. dollar, lower unit sales volume in Europe and an extra week included in the second quarter of the previous year. Gildan also touched on inventory destocking by a major retailer that limited sell-through to consumers, although it did not identify the retailer.

On a positive note, cotton costs have been coming down and the company expects margins to improve as a result. The Asian business was up 30 percent and is now a third of the company’s business.

Looking ahead, Gildan projected earnings for 12 months ending January 3 will be in the range of $1.50 to $1.55 on projected sales of $2.6 billion. The company had previously guided to net sales in excess of $2.65 billion.

Printwear sales growth is now projected to be in excess of 10 percent, not 12 percent, due to lower sales in Europe. Branded apparel sales growth was dropped to 15 percent from the previously guided 20 percent. Earnings per share for the September quarter are expected to be in the range of 51 to 53 cents.

Gildan said that by the end of the 2015 holiday season, Gildan branded underwear will be in about 18,000 retail doors, double the amount of retail doors in the end of the June quarter.

The company remained upbeat on the conference call with chief executive officer Glenn Chamandy saying, “Our strategy is on track. We have great momentum and everything is intact. We’re still working on new programs that we’ll obtain in the holiday season that will be material for 2016.”

Management also stated on the call that the general retail environment was flat and that the consumer was looking for value, which was good for Gildan. They feel well positioned for the environment even as department stores and specialty chains are weak.

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