May 3 (Reuters) - Clothing maker Gildan Activewear Inc reported a 56 percent drop in quarterly earnings on Thursday on significantly higher cotton costs.
Net income in the second quarter ended April 1 fell to $26.9 million, or 22 cents a share, from $61.7 million, or 50 cents a share, a year earlier.
Excluding restructuring and acquisition-related costs, earnings were $27.8 million, or 23 cents a share. That compared with a profit of $64.6 million, or 53 cents a share, in the second quarter of last year.
Montreal-based Gildan also said it would acquire smaller rival Anvil Holdings Inc for $88 million and finance the deal through its bank credit facility.