Gildan Activewear, a Canadian manufacturer of everyday basic apparel, reported a 33.1 percent increase in sales to $801.6 million (US dollars) in the third quarter (Q3) of FY21, which ended on October 3, 2021, compared to the same period in the previous fiscal and an 8 percent increase over Q3 FY19. During the quarter, the company’s net earnings increased by 233.9 percent to $188.3 million (Q3 FY20: $56.4 million).
“Our record third-quarter achievement was driven by our enhanced business economics, which were underlies by our Back to Basics model, the operational excellence of our team, and the currently underway recovering in supply, which drove sales volumes that are now above pre-pandemic levels,” Glenn Chamandy, Gildan president and CEO, said in a press release.
The three-month revenue increased to $281.7 million ($135.5 million), while net margin nearly tripled to $201.3 million.In terms of product categories, Gildan reported a 43.7 percent increase in activewear sales to $655.8 million ($456.3 million), while hosiery and underwear sales remained flat at $145.8 million ($146.0 million).
Geographically, the highest performing region was the United States, which increased 32.6 percent to $685.9 million ($517.1 million). In Canada, sales increased 42.1% to $36.1 million ($25.4 million). Furthermore, international sales increased by 33.1 percent to $79.6 million ($59.8 million) in the third quarter.
“The pandemic recovery is progressing well in North America, resulting in better POS (point of sale) developments compared to pre-Covid 2019 levels.”
“This, along with current pricing actions implemented in the fourth quarter of this year, gives us confidence that we are well situated to efficiency of the processes inflationary pressures and keep delivering on our operating profit goal,” the company stated.
