(Reuters) - Canadian clothing maker Gildan Activewear Inc (GIL.TO) raised its full-year earnings forecast after posting a profit for its first quarter, driven by sales in its printwear business.
The company now expects full-year revenue to slightly exceed its previous forecast of about $2.1 billion, while backing its earnings outlook of between $2.60 and $2.70 per share.
Gildan is a top supplier to screenprinting companies, which print designs on its T-shirts and other basic clothing items. The company also makes private-label and branded socks sold by mass-market retailers.
But the company has been shifting away from the private-label business, and has been spending to market its own brands such as Gildan and Gold Toe.
Gildan reported a net income of $35.3 million, or 29 cents per share, for the quarter ended December 30, compared with a loss of $46.1 million, or 38 cents per share, a year earlier.
The company, which holds the U.S. sock licenses for Under Armour Inc (UA.N) and New Balance, said net sales rose 39 percent to $420.8 million.
Analysts on average had expected earnings of 30 cents per share on revenue of $398 million.
Montreal-based Gildan’s printwear segment sales rose 65.6 percent, while sales in branded apparel rose 13 percent.
Shares of Gildan, which has a market value of about C$4.46 billion, closed at C$36.55 on the Toronto Stock Exchange on Wednesday. The stock has gained about 70 percent of its value in the last one year.
Reporting by Sandhya Vijayan and Allison Martell; Editing by Sriraj Kalluvila