UPDATE 1-Gildan profit jumps as cotton prices decline

Thu Aug 1, 2013 8:25am EDT
 
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* Sees full-year earnings/share $2.67-$2.70 vs est $2.68

* Third-quarter profit jumps 47 pct

* Branded apparel sales, lower cotton prices boost results

Aug 1 (Reuters) - Canadian apparel maker Gildan Activewear Inc raised the lower end of its full-year earnings outlook for the second time this year, saying it expects higher sales of printwear and branded apparel.

Gildan now expects 2013 earnings to be $2.67-$2.70 per share, up from $2.65-$2.70 forecast earlier.

Analysts on average had expected earnings of $2.68 cents per share, according to Thomson Reuters I/B/E/S.

The Montreal-based company reported a 47 percent jump in third-quarter profit on Thursday. Net income rose to $115.8 million, or 94 cents per share, helped by lower cotton prices and higher sales volume.

Margins improved as cotton prices fell 4 percent to 85.61 cents per pound between April and June.

Profit got a boost also from a favorable product mix for both printwear and branded apparel and better supply chain and manufacturing efficiencies, Gildan said.   Continued...