MONTREAL — Clothing maker Gildan Activewear Inc. shares are up 16 per cent after the company reported record second-quarter sales and profits that beat expectations on the back of strong performance in key growth areas including fashion basics and international markets.
Net earnings amounted to $109 million, or 51 cents per diluted share, up from $107.7 million, or 48 cents per share, during the same period last year.
Quarterly revenue rose seven per cent to $764.1 million, driven by a 17 per cent increase in activewear sales, particularly fleece wear.
That was partially offset by a 24 per cent decline in sales in its hosiery and underwear lines, largely due to a decline in sock orders at big retailers, which it says are shifting toward their own private label brands.
The Montreal-based company says international sales were up 35 per cent for the quarter.
Gildan reported record adjusted earnings of 52 cents per share, beating analysts estimates of 49 cents per share, according to Thomson Reuters Eikon.
It also upwardly revised its 2018 sales and profit guidance to come in at the upper range of its prediction for low- to mid-single digit growth and also upwardly revised its expectations for free cash flow.
Gildan shares were up 16 per cent at $39.29 in morning trading on the Toronto Stock Exchange.
Companies in this story: (TSX:GIL)
The Canadian Press