Gildan Activewear Inc. said it expects that its earnings for its second fiscal quarter ended April 3 will be above its previous guidance. GIL now expects diluted EPS to be at least 10% above the top end of its previously communicated guidance range of U.S. 60 cents to U.S. 65 cents for the quarter, excluding a special charge for the closure of its Canadian yarn-spinning facilitie, which is estimated at approximately U.S. 26 cents per share.
The higher than anticipated growth in E.P.S. is primarily attributable to more favourable selling price realizations for Gildan's products in the quarter. In addition, Gildan has achieved its planned targets for unit volume growth.
The Company indicated that it now expects full year diluted EPS to be approximately U.S. $2.80, before the special charge, and approximately U.S. $2.54 after the special charge, up from the Company's prior full year guidance of approximately U.S. $ 2.60 and U.S. $2.34 respectively. The Company continues to assume sequentially lower unit selling prices in the second half of the fiscal year, together with continuing capacity constraints which are not expected to be alleviated until the first quarter of fiscal 2006.
