May 7, 2008 / 9:04 PM / 10 years ago

UPDATE 1-Gildan profit rises with prices, sales

(In U.S. dollars, adds details)

TORONTO, May 7 (Reuters) - Gildan Activewear Inc GIL.TO GIL.N, reported a higher second-quarter profit on Wednesday, helped by stronger sales and selling prices for its clothing lines.

The company, which sells T-shirts, socks and underwear, said its net profit rose to $41.7 million, or 34 cents a diluted share, in the quarter ended March 30. That compares with a profit of $21.1 million, or 17 cents a share, in the same period last year.

Before restructuring charges, Gildan said adjusted net earnings for the second quarter were $42.5 million, or 35 cents a share, compared with adjusted net earnings of $37.5 million, or 31 cents a share, a year earlier.

Analysts had expected earnings before exceptions of 34 cents a share, on average, and revenue of $290 million, according to Reuters Estimates.

The Montreal-based company said sales rose 26.5 percent to $293.8 million.

Last week, Gildan cut its second-quarter adjusted profit forecast to 35 cents a share from 42 cents and its 2008 target to $1.45-$1.50 a share from $1.85-$1.90.

Alongside lower production from its Dominican Republic factory, the company was hurt by a writedown of discontinued products and integration problems at sock-maker Kentucky Derby Hosiery, which it acquired in 2006.

$1=$1.01 Canadian Reporting by John McCrank; editing by Peter Galloway

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below