Canadian firm Gildan Activewear posts sales of $696 mn in Q1 FY24

An uptick was also observed in international sales, which rose by 1 per cent. This increase suggests a stabilising pattern in point-of-sale (POS) trends, with some regions showing clear signs of recovery, the company said in a press release.

Contrastingly, the hosiery and underwear segment experienced a downturn, with sales declining by 10 per cent compared to the previous year.

On the profitability front, Gildan generated a gross profit of $211 million, constituting 30.3 per cent of net sales, an improvement from $188 million, or 26.7 per cent, in the corresponding period last year. When adjusted, gross margins remained steady at 30.3 per cent, up from 26.2 per cent, marking a 410-basis-point enhancement.

Operating expenses stood at $105 million, representing 15.1 per cent of net sales. Operating income was also reported at $105 million or 15.1 per cent of net sales, a decrease from the $128 million or 18.2 per cent recorded in the prior year’s first quarter. However, adjusted operating income showed a positive trajectory at $126 million or 18 per cent of net sales, an increase of $23 million or 340 basis points.

Earnings per share (EPS) figures also varied, with GAAP diluted EPS at $0.47, down by 13 per cent year over year. Nonetheless, adjusted diluted EPS stood out at $0.59, up by 31 per cent from the previous year, the release added.

"Our solid first quarter performance highlights the strength of our business model and our strong focus on executing on our priorities. The quarter included several bright spots, including continued market momentum in ring spun and fleece products. I'm pleased with our competitive positioning and our execution which drove significant year over year improvement in our key financial metrics. Our key focus strategic priorities are clear, and we are off to a good start to the year,” said Vince Tyra, Gildan’s president and CEO.

Fibre2Fashion News Desk (DP)