* Q3 EPS $0.53 vs $0.34 year earlier
* Revenue up 28 pct at $395.3 mln
* Shares down as much as 6.5 percent (Adds outlook details, share price; in U.S. dollars unless noted)
TORONTO, Aug 12 (Reuters) - Clothing maker Gildan Activewear Inc (GIL.TO) posted a higher quarterly profit on Thursday, but its shares fell as much as 6.5 percent on a muted fourth-quarter and fiscal 2011 outlook.
While Montreal-based Gildan continued to project sales of $1.3 billion for the year, it said clothing shipments were expected to be constrained by low inventories of finished goods.
Gildan, which makes products such as T-shirts, socks and underwear, said it expected significant growth opportunities, but would be using some of its 2011 production capacity to rebuild its inventories.
It said a portion of fourth-quarter business was pulled into the third quarter as screenprinters made purchases ahead of industry-wide price hikes by wholesale distributors. Gildan is a leading supplier of clothing to the Canadian, U.S. and European screenprint markets.
Gildan said earnings climbed to $64.7 million, or 53 cents a share, for the third quarter ended June 30. This compares with $41.5 million, or 34 cents a share, a year earlier.
Adjusted net earnings, which exclude one-time items, were $66.4 million, or 54 cents a share.
Revenue rose 28 percent to $395.3 million.
Strong growth in sales volumes and lower spending on promotional activity in the United States, helped drive earnings, the company said.
Gildan shares, which have soared roughly 40 percent since their 2010 lows in January, were down C$1.74, or 5.5 percent, at C$29.76 after hitting an intraday low of C$29.50 on the Toronto Stock Exchange.
$1=$1.046 Canadian Reporting by Solarina Ho and Ashutosh Joshi in Bangalore; editing by Rob Wilson