Gildan Q2 sales jump 225% as N American market recovers

Second quarter (Q2) sales at Gildan Activewear, a Canadian manufacturer of everyday basic apparel, accelerated 225.3 per cent to $747.2 million (Q2 FY20: $229.7 million), driven primarily by higher sales volumes and a favourable product-mix. The company’s net earnings for the period ended on July 4, surged to $146.4 million from a loss of $249.7 million.

“Our business continued to build momentum during the second quarter as economic activity in North America trended positively and the power of our Back to Basics strategy continued to drive stronger profitability,” Glenn J Chamandy, Gildan president and CEO, said in a press release. 
 
Gross profit for the three-month period was $240.8 million (from a loss of $148.5 million). Operating income rose to $159.7 million (loss: $236.1 million).

Activewear sales during Q2 FY21 expanded 353.7 per cent to $597.1 million reflecting higher unit sales volumes in all markets, particularly in imprintables, driven by the strong recovery in point-of-sales (POS) and the non-recurrence of significant distributor inventory destocking that occurred in Q2 last year. Whereas sales in the hosiery and underwear category grew 52.9 per cent to $150 million driven by double-digit POS growth in both socks and underwear, the non-recurrence of retailer inventory destocking and favourable product-mix.
 
According to the company, sales in the US jumped 246.3 per cent to $643 million (from $185.7 million). Moreover, Canada’s sales were up 191.9 per cent to $25.1 million ($8.6 million), followed by International sales rising 123.2 per cent to $79 million ($35.4 million).
 
“Once again, our team demonstrated exceptional operational capability by delivering on our targets while navigating through a tight supply chain environment,” Chamandy added.