Despite a weak final quarter, the Canadian textile group Gildan Activewear Inc. achieved record sales in the 2022 financial year. However, the profit fell short of the previous year’s level due to negative special effects. This emerges from an annual report published by the parent company of the American Apparel brand on Wednesday.
Accordingly, group sales last year reached 3.24 billion US dollars (3.06 billion euros), which corresponded to an increase of 10.9 percent compared to 2021. In the fourth quarter, however, revenues fell by 8.2 percent compared to the same period of the previous year and thus fell short of market expectations.
Higher material and production costs, value adjustments and other special effects ensured that net profit slipped by 10.8 percent to 541.5 million US dollars (510.8 million euros). Adjusted for one-off factors, it rose by 6.8 percent to $574.4 million, according to the group.
For 2023, the company expects considerable “headwinds” in the first quarter, but expects the situation to ease as the year progresses. Overall, management forecasts revenue growth in the “low single-digit percentage range” and adjusted earnings per share around the prior-year level of $3.11.