* Q1 adj EPS $0.30 vs forecast $0.29; rev tops estimates
* Sees Q2 revenue of $375 mln vs est. $409.4 mln (Adds analyst comment, background; in U.S. dollars unless noted)
TORONTO, Feb 8 (Reuters) - Clothing maker Gildan Activewear Inc GIL.TO GIL.N reported a higher quarterly profit on Tuesday, beating market expectations, as it benefited from strong demand for its products.
However, the company, which makes basic clothing items such as T-shirts, socks and underwear, gave a second-quarter revenue outlook that missed average analyst expectations by about $34 million.
The numbers show that despite the sharp spike in demand Gildan experienced in the first quarter, further boosted by a price increase, the company was being cautious about future demand.
“What they are indicating on the revenue assumptions is that they’re anticipating some pressure on demand with the rising cotton prices,” Stonecap Securities analyst Scott Rattee said.
World cotton prices have risen 134 percent since the start of the season to record levels. [ID:nN04256407]
The company is almost certain to implement more price increases over the next couple of quarters, Rattee said.
Gildan is a top supplier to the screenprint market in the United States and Canada, with a market share of more than 60 percent. It sells blank T-shirts, sport shirts and fleece, which are then printed with designs and logos.
It also supplies private label and Gildan-branded socks, primarily to mass-market retailers.
First-quarter earnings rose to $35.9 million, or 29 cents a share, from $28 million, or 23 cents a share, a year ago. Adjusted earnings rose to 30 cents a share. Revenue rose 50 percent to $331.3 million.
Analysts on average had forecast earnings of 29 cents a share on revenue of $295.9 million.
The Montreal-based company’s shares have gained 34 percent in the past 52 weeks.
$1=$0.99 Canadian Reporting by S. John Tilak; editing by Rob Wilson email@example.com; +1 416 687 7918