MONTREAL — Gildan Activewear Inc. shares fell more than 30 per cent in early trading after the company cut its 2019 guidance and warned third-quarter earnings would shrink.
The shares were down by $14.50 or more than 31 per cent at $31.99 in trading on the Toronto Stock Exchange on Friday after the company highlighted weaker demand for imprintable apparel in North America and internationally.
The clothing maker said Thursday it expects to report on Oct. 31 that its third-quarter earnings fell about seven per cent to 51 cents US per share and about 53 cents US per share on an adjusted basis for the period ended Sept. 29.
The Montreal-based company said on Aug. 1 that its adjusted earnings per share would be flat on about five per cent sales growth.
Gildan is also cutting its full-year guidance to reflect a sales shortfall of about US$50 million in the third quarter and continued weakness in the fourth quarter that will cut sales by about US$70 million. Distributor inventory reductions should reduce sales by about US$100 million.
The company now expects 2019 sales to be down low single digits from 2018 and diluted earnings per share to be US$1.50 to $1.55 per share.
This report by The Canadian Press was first published Oct. 18, 2019.
Companies in this story: (TSX:GIL)
The Canadian Press