(Filed Under Financial and General Interest News). Q2 sales at Gildan Activewear fell by 3.5% to $688.0 million, down from $714.2 million in the same period last year. Net income fell 4.7% to $94.7 million, down from $99.4 million in 2015.
Meanwhile it claimed its “Gildan brand continues to gain market share in men’s socks and underwear categories.” And it revealed that it signed a “definitive agreement to acquire 100% of the equity interest of Peds Legwear Inc.” (see separate story).
Gildan manufactures and markets apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear under company-owned brands such as Gold Toe and Kushyfoot. It also sells apparel under the licensed Mossy Oak brand, and socks in the U.S. under an Under Armour license.
The company stated its “Net sales were slightly below the company’s expectations and reflected headwinds from distributor inventory destocking in printwear, the exit of certain private label programs in retail, and unfavorable foreign exchange. Branded apparel results were impacted by a soft retail environment with sluggish store traffic trends and continued weakness in the department store and national chains channel. In printwear, the company continued to see positive point of sales (POS) growth, although U.S. printwear market conditions were mixed.”
The company continued, “Momentum in unit market share penetration for the Gildan brand in the men’s socks and underwear product categories continued to build in the quarter. According to the NPD Group’s Retail Tracking Service (NPD), at the end of the second quarter, unit market share for Gildan branded men’s underwear increased to approximately 9%. In addition, during the quarter Gildan men’s underwear programs gained improved in-store placement at various retailers. The company believes this improved in-store placement will continue to drive further market share gains for the Gildan brand in the men’s underwear category. NPD also confirmed unit market share of the Gildan brand for men’s socks of approximately 22% at the end of the June quarter, making Gildan the number one brand in the men’s sock category in the U.S. total measured market.”
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