The Canadian textile group Gildan Activewear Inc. was able to slightly improve its sales in the third quarter of the 2023 financial year. However, the profit clearly fell short of the previous year’s level. This emerges from an interim report that the parent company of brands such as American Apparel and Gildan published on Thursday.
Accordingly, group sales in the three months before October 1st amounted to 869.9 million US dollars (818.5 million euros), which corresponded to an increase of 2.3 percent compared to the same quarter of the previous year.
However, operating profit fell by 11.2 percent to $155.0 million due to higher material and production costs as well as lower sales prices. The net result shrank by 16.7 percent to 127.4 million US dollars (119.9 million euros).
In the first nine months of the current year, the group suffered a 4.3 percent decline in sales to $2.41 billion due to losses in the first half of the year. Net profit was $380.3 million, 16.9 percent below the corresponding previous year’s level.
For the rest of the year, management was a little more cautious than last. The group announced that sales development and profits would probably be “at the lower end” of the forecast ranges published at the beginning of August.