Canadian clothier Gildan Activewear posts Q4 FY20 sales of $690 mn

Gildan Activewear, a Canadian manufacturer of branded clothing, posted 4.8 per cent sales growth to $690.2 million in its fourth quarter (Q4) fiscal 2020 ended on January 3, 2021 compared to sales of $658.7 million in the same period last fiscal. The company’s net earnings for the quarter increased to $67.4 million (Q4 FY19: $32.5 million).

 

“Our Back to Basics strategy put us on a sound footing going into the pandemic and the additional actions we have taken during 2020 have enhanced our competitive positioning as we work towards a stronger environment, growth, and achieving our long-term profitability targets,” Glenn J Chamandy, president and CEO of Gildan, said in a press release.

 

Gross profit during Q4 FY20 rose to $155.5 million ($118.2 million), while selling, general and administrative expenses were $71.9 million ($76.5 million). Gildan’s operating income for the three-month period was $78.8 million ($24.3 million).

 

Sales of activewear product category for Q4 FY20 grew 11.3 per cent to $537.9 million ($483.5 million) due to favourable imprintables product-mix, higher imprintables volume growth in North America and higher unit sales of activewear through retail channels, partly offset by lower international shipments. Whereas, hosiery and underwear product sales slipped 13.0 per cent to $152.3 million ($175.1 million).

 

Geographically, Gildan’s sales in US increased during the quarter by 9.5 per cent to $604.7 million ($552.0 million). However, sales in Canada were down 25.1 per cent to $25.9 million ($34.6 million), and International sales declined 17.2 per cent to $59.6 million ($72.0 million).