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Gildan Activewear swings to US$146.1-million Q2 profit as revenues surge 225 per cent

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MONTREAL — Gildan Activewear Inc. swung to a US$146.4-million profit in the second quarter as revenues surged 225 per cent despite supply chain challenges.

The Montreal-based apparel maker, reporting in U.S. dollars, says its net income climbed to 74 cents per share from a loss of US$1.26 per share or US$249.7 million in the prior year as it recovered from the effects of the onset of the COVID-19 pandemic.

Excluding one-time items, adjusted profits were US$135.3 million or 68 cents per share, compared with a loss of US$196.6 million or 99 cents per share in the second quarter of 2020.

Revenues for the three months ended July 4 were US$747.2 million, up from US$229.7 million a year earlier and down about seven per cent from record second quarter 2019 sales.

Activewear sales surged 354 per cent to US$597.1 million, hosiery and underwear climbed 53 per cent to US$150 million

Gildan was expected to report 51 cents per share in adjusted profits on US$687.7 million of revenues, according to financial data firm Refinitiv.

“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,” said stated CEO Glenn Chamandy.

The company reinstated its share buyback program that was suspended along with its dividend in April 2020 while it also cut executive compensation after losing nearly US$100 million in its first quarter due to the global impact of the COVID-19 pandemic. The dividend was restored last quarter.

This report by The Canadian Press was first published Aug. 5, 2021.

Companies in this story: (TSX:GIL)

The Canadian Press

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