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    HomeLifeStyleCanada's Gildan Activewear posts gross profit of $188 mn in Q1 FY23

    Canada’s Gildan Activewear posts gross profit of $188 mn in Q1 FY23


    Montreal-based apparel manufacturer Gildan Activewear has reported gross profit of $188 million in the first quarter (Q1) of fiscal 2023 (FY23), down $53 million from the prior year. The company’s adjusted gross profit was $184 million, down $55 million from the prior year. The company’s net sales for the quarter were $703 million, down $72 million or 9 per cent compared to the prior year’s sales.

    In Q1 FY23, sales in the activewear category were $588 million, down $80 million or 12 per cent from the same period last year. International sales were down 17 per cent versus the prior year, while the hosiery and underwear category showed strength with sales of $115 million, up $8 million or 7 per cent compared to Q1 FY22, mainly driven by sock volume growth.

    Gildan Activewear reported a Q1 FY23 gross profit of $188 million, down $53 million YoY.
    Net sales were $703 million, down $72 million or 9 per cent YoY, with activewear sales down 12 per cent and international sales down 17 per cent.
    Gross margin and adjusted gross margin were also down YoY due to peak fibre costs and higher manufacturing input costs.

    Gross margin and adjusted gross margin were down year-over-year (YoY) by 430 basis points and 470 basis points, respectively, due to peak fibre costs, higher manufacturing input costs, and unfavourable mix. These factors were partly offset by higher net selling prices, the company said in its financial results for the first quarter ending April 2, 2023.

    Selling, general, and administrative expenses for the first quarter were largely in line with prior year levels, but as a percentage of net sales, they were 11.6 per cent compared to 10.5 per cent last year, primarily due to sales deleverage.

    The company generated operating income of $128 million in Q1 FY23, or 18.2 per cent of sales, compared to operating income of $162 million, or 20.9 per cent of sales in the first quarter last year.

    “We are pleased with our top line results having met our sales expectations for the quarter” said Glenn J Chamandy, Gildan’s president and CEO. “Moreover, even though the economic environment remains uncertain, we remain comfortable with our full year outlook given our strong competitive position, which we are reinforcing with the Gildan Sustainable Growth (GSG) strategy, and point of sale (POS) trends across our business coming in line with our expectations during the first quarter.”

    Fibre2Fashion News Desk (DP)




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