Gildan Activewear raised third quarter and fiscal year earnings guidance and the company now expects diluted EPS for the third quarter to be at least 10% above its most recent guidance of approximately 50 cents per share. Gildan has already raised its guidance once this year, with a 10% increase at the end of Q2.
For the full year, the company now expects diluted EPS of approximately $1.50 per share for the full 2005 fiscal year, before the special charge recorded in the second quarter for the closure of its Canadian yarn-spinning facilities, up from its prior guidance of $1.40 per share.
Gildan stated that the increase in projected EPS in the second half of the fiscal year is due to higher than anticipated selling prices, more favorable product-mix and lower manufacturing costs. The company has been experiencing a less promotional environment, which has boosted margins for the entire year.
