Company News

BUZZ-Gildan Activewear falls on 2019, Q1 EPS outlook cut

** U.S.-listed shares of Canadian apparel maker Gildan Activewear fall ~2 pct to $35.50 as co cuts Q1 and 2019 EPS outlook taking into account an impairment charge

** Co’s Toronto-listed shares down 1.6 pct to C$47.74

** Co lowers Q1 2019 adj EPS outlook to a range of $0.14 to $0.16 from $0.24 to $0.26; trims 2019 adj EPS to $1.90 to $2.00 from $2.00 to $2.10

** Co expects to take about $19 mln-$23 mln in Q1 related to the wind-down of one of the company’s U.S. distributors

** RBC Capital Markets says it’s concerned about potential for near-term disruption in the distributor channel; cuts PT to $33 from $34

** Of 15 brokerages, 4 rate Gildan “buy” or higher, 11 “hold”; median PT $36.50

** Including Wednesday’s drop, GIL.N up ~17 pct YTD, while GIL.TO up ~15 pct (Reporting by Shanti S Nair in Bengaluru)