A Canadian manufacturer of branded clothing, Gildan Activewear, has recorded a 71.3% dip in sales of $ 229.7 million in Q2 FY20 compared to the sales of $ 801.6 million during the previous year. The company has also recorded a net loss of $ 249.7 million as compared to the net earnings of $ 99.7 million during the previous year.
Gross loss during the quarter was $148.5 million ($222.8 million). SG&A (selling, general & administrative) expenses dropped 29.5 per cent to $64.9 million ($92.0 million).
Gildan’s sales of activewear segment during Q2 FY20 slipped 80.2 percent to $131.6 million ($665.6 million) primarily due to lower sales volumes of printables in North America which were down approximately 75 percent in the quarter. Whereas hosiery and underwear, sales came down 27.9 percent to $98.1 million ($136.0 million).
“Against the challenging backdrop of the pandemic and the difficult but necessary actions we have taken, we have accelerated efforts under our Back to Basics strategy to further simplify our product portfolios, remove complexity and cost from our business, better support our customers and drive long term market share growth,” Glenn Chamandy, president and CEO of Gildan Activewear, said in a press release.
