Gildan Activewear Inc. reported sales climbed 26.5% in its second quarter ended April 29, to $293.8 million from $232.1 million a year ago. The increase was due to an increase of 98.4% in sock sales due to the acquisition of V. I. Prewett & Son and new retail sock programs obtained in FY07; a 7.5% increase in unit volumes for activewear; an approximately 3% increase in activewear unit selling prices; and a more favorable activewear product-mix.
Unit shipments of activewear to Europe increased only 1.1% during the quarter due to a shortfall in production and a delay in new product introductions as a result of issues at the companys Dominican Republic textile facility.
Gildan reported net earnings of $41.7 million, or 34 cents a share, nearly double the $21.1 million, or 17 cents, earned a year ago. Results for Q2 include a charge of $800,000, or a penny per share, reflecting ongoing carrying costs for Canadian and U.S. manufacturing facilities, pursuant to the closure of these facilities in FY07. Excluding restructuring charges in both periods, earnings rose 13.3% to $42.5 million, or 35 cents, from $37.5 million, or 31 cents, a year ago.
