(Filed Under Financial and General Interest News). Canada-based Gildan Activewear, Inc. reported a decrease in net earnings and sales for its first fiscal quarter ended January 4, 2009.

Net earnings decreased from $27.9 million in the first quarter of fiscal 2008 to $4.3 million this year.

According to a statement released by the company, the reduction in net earnings for the first quarter compared to last year was "primarily due to significantly lower unit sales volumes, combined with higher cotton and energy costs reflected in inventories consumed in cost of sales during the quarter, more unfavorable activewear product-mix and increased provisions for accounts receivable."

Cotton costs are reportedly projected to be at their highest point during the year in the first quarter of fiscal 2009, whereas costs were at their lowest point during the same time last year.

Sales for the first quarter of fiscal 2009 were down 26.5 percent to $184 million from $250.5 million in the first quarter of fiscal 2008.

For the company's activewear and underwear product groups, net sales decreased from $168.4 million for the three months ended December 30, 2007 to $169.6 million for this quarter. Socks decreased from $82 million to $68.2 million.

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Published 02-25-2009 by Bruna Fernandes