Canada's Gildan Activewear reports net sales of $3,196 mn in FY23

International sales saw a significant decline, dropping 17 per cent to $225 million compared to the prior year. The company's gross margin also fell to 27.5 per cent, down 310 basis points, despite the inclusion of hurricane insurance recoveries which contributed 70 basis points to the margin. Adjusted gross margin stood at 27.4 per cent, showing a 240-basis point decrease.

Selling, general, and administrative expenses were reported at $330 million, or 10.3 per cent of net sales, maintaining a relatively stable position in terms of the percentage of sales compared to the previous year, with an adjusted figure of 10.1 per cent, the company said in a media release.

Operating income for FY23 was $644 million or 20.1 per cent of sales, marking an improvement from $603 million or 18.6 per cent of sales in 2022. However, adjusted operating income saw a decline to $553 million, resulting in an adjusted operating margin of 17.3 per cent, down from 19.7 per cent the year before.

Net earnings and adjusted net earnings for the year were $534 million and $453 million, respectively, showing a decrease of 1 per cent and 21 per cent against the prior year. Diluted earnings per share (EPS) and adjusted diluted EPS were $3.03 and $2.57, up 3 per cent and down 17 per cent, respectively, compared to $2.93 and $3.11 in the previous fiscal.

For the fourth quarter of fiscal 2023 (Q4 FY23), Gildan reported net sales of $783 million, a 9 per cent increase over the same period in FY22. The quarter's gross profit was $237 million, or 30.2 per cent of sales, with an adjusted gross profit matching the reported figure, up $28 million from the previous year. Operating margin for the quarter stood at 22.8 per cent, with an adjusted operating margin of 19.7 per cent. Diluted EPS for Q4 was $0.89, up 89 per cent, and adjusted diluted EPS increased by 15 per cent to $0.75 compared to Q4 FY22.

"As the company celebrates its 40th anniversary this year, I see a bright future ahead, where we can leverage our strengths and continue to enhance value for all stakeholders. Since joining the company, I’ve had the opportunity to visit with hundreds of employees in Montreal and Honduras, and I've met with many of our key customers during the recent industry trade shows in Las Vegas, Nevada and Long Beach, California, which fuelled my excitement for the future," said Vince Tyra, president and CEO.

Fibre2Fashion News Desk (DP)