Gildan Activewear Inc. reports significant year-over-year growth in sales of basic apparel in the second quarter. The company has approximately 200 employees in Mocksville.
WALT UNKS / magazine
Gildan Activewear Inc. again benefited from the rebound in the US economy, including consumer spending on federal economic controls, and reported net income of $ 146.4 million for the second quarter on Thursday.
Adjusted net income for the quarter was $ 135.3 million.
By comparison, Gildan reported a loss of $ 249.7 million in the second quarter of 2020, mostly reflecting the brick and mortar retail closings in the first few months of the COVID-19 pandemic.
Diluted earnings were 74 cents, down from a loss of $ 1.26 a year ago. The adjusted profit was 68 cents compared to a loss of 99 cents in the previous year.
The average profit forecast was 53 cents by four analysts surveyed by Zacks Investment Research. Analysts generally do not factor in one-off gains and charges in their forecasts.
“Our business continued to gain momentum in the second quarter as the North American economy developed positively and the strength of our Back to Basics strategy continued to drive greater profitability,” said Glenn Chamandy, President and CEO of Gildan, in an explanation.
Gildan defines its Back to Basics strategy as “simplifying our product portfolio and reducing complexity in manufacturing and distribution while we continue to improve our competitive position”.