Canadian apparel group Gildan Activewear reports record second-quarter results.
In the second quarter, Gildan generated sales of $896 million, up 20 percent from the same period last year. The company behind brands like Gildan, American Apparel and Comfort Colors had net income of $158 million, up 8 percent year over year.
Gildan expects to continue to meet the three-year targets announced earlier this year. These provide for annual sales increases of an average of seven to ten percent.
Strong sales in the activewear business
The activewear business turned over 758 million US dollars and posted an increase of 27 percent. Hosiery and underwear, on the other hand, fared less well. Revenues fell 8 percent year over year to $138 million.
Gildan attributes the increase in sales in the activewear segment to higher net sales prices, which could be realized due to price increases and fewer discounts. Sales in the underwear segment declined due to reduced retail demand.
As we entered the second half of the year, Gildan noted a slowdown in the retail environment. However, the fashion group still believes that the return of major events and the recovery of the travel and tourism industry will further boost demand.