Gildan Activewear fiscal fourth quarter sales increased 30.2% to $235.2 million compared to $180.7 million last year. The increase was due to $30.0 million of sock sales from the acquisition of Kentucky Derby Hosiery in July, as well as a 13.7% increase in unit sales for activewear and more sales of higher-priced product. The growth in activewear unit sales was primarily due to continuing market share gains.

Gross margins in the fourth quarter of fiscal 2006 were 30.6%, versus 32.3% in Q4 of 2005. The decrease in gross margins was entirely attributable to the impact of lower margins from the sale of socks. Excluding the impact of Kentucky Derby Hosiery, gross margins in the fourth quarter of fiscal 2006 were 32.5%. SG&A expenses in the fourth quarter were 10.1% of sales, compared to 11.1% of sales in the fourth quarter of last year. The decrease in this metric as a percentage of sales was caused by the non-recurrence of severance costs incurred in Q4 and lower performance-related compensation costs.

Gildan’s fourth quarter net earnings were $16.8 million compared to $29.2 million last year. Diluted EPS was 28 cents compared to 48 cents last year. The decline in income and EPS was due to a 33 cent restructuring charge. Gildan has increased its diluted EPS guidance for fiscal 2007 from $2.50 per share to $2.55 per share, to take account of a 5 cents per share impact of the acquisition of Kentucky Derby.

Gildan Activewear 
Fiscal Full Year Results
(in $ millions) 2006 2005 Change
Total Sales $773.2 $653.9 18.3%
GM% 32.6% 31.1% +150 bps
Net Income $106.9  $86.0  +24.2%
Diluted EPS $1.76 $1.43 +23.1%
Inventory* $200.7  $134.9  +48.8%
*at quarter-end