October 18, 2019 / 3:32 PM / a month ago

BUZZ-Gildan Activewear: Slumps to a 5-yr low after cutting sales forecast

(Updates)

** Shares of Canadian apparel maker Gildan Activewear fall as much as 33.7% to C$30.81 - lowest since December 2014

** Stock hits almost 5-yr low

** Company says Q3 sales are expected to be about $740 mln, 2% less compared with a year earlier

** There was significantly weaker-than-expected demand for imprintables in North America and continuing softness in international imprintables market - GIL

** Company revises its 2019 revenue forecast, taking into account about $50 million in sales shortfall in Q3; cuts sales forecast for Q4 by about $70 mln on lower demand expectation

** Brokerage Canaccord Genuity cuts PT on GIL’s U.S.-listed shares to $32 from $39

** Reduces revenue growth estimates to reflect demand slowdown and inventory build within GIL’s large customer channels

** U.S.- listed shares fall 21% to $23.48, their lowest in more than 3 years

** Company is expected to report Q3 results on Oct. 31

** Toronto-listed stock down ~14%, while the U.S.- listed shares have lost ~11% YTD

Reporting by Shradha Singh in Bengaluru

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