Gildan Activewear 3Q net income declines

NEW YORK (AP) ? Lower prices, some charges and plant-related costs pushed Gildan Activewear Inc.'s net income lower in its fiscal third quarter. The Canadian sportswear company also gave a fourth-quarter earnings forecast on Thursday that is likely above analysts' estimates.

Gildan's earnings fell 11 percent to $78.6 million, or 64 cents per share, from $88.1 million, or 72 cents per share, in the year-ago period.

Taking out restructuring costs and charges tied to its approximately $88 million acquisition of t-shirt and sports shirt supplier Anvil Holdings Inc., adjusted earnings were 66 cents per share, compared with 76 cents per share a year ago.

Analysts, on average, expected slightly higher earnings of 67 cents per share, according to FactSet.

Revenue for the period ended July 1 climbed 13 percent to $600.2 million from $529.7 million last year.

That beat the $595.2 million forecast by Wall Street.

Gildan reported higher sales for both its branded clothing units and printwear ? or clothes like t-shirts and sweatshirts made to have logos and designs applied by third parties. The branded clothing division was helped by higher prices, a better product mix and the Anvil buyout. The printwear segment benefited from the acquisition, increased demand from U.S. screenprinters and international growth.

For the fourth quarter, Gildan anticipates adjusted earnings "close to" 80 cents per share on revenue of approximately $560 million. Analysts, on average, forecast earnings of 79 cents per share on revenue of $562.1 million.

The company said quarterly cotton costs are likely to be significantly lower than a year ago, but that this will be somewhat offset by higher costs for labor, transportation, electricity and other components of its business.

Gildan still expects fiscal 2012 adjusted earnings of about $1.30 per share on revenue of about $1.95 billion.

Wall Street predicts earnings of $1.32 per share on revenue of $1.96 billion.

The company declared a quarterly dividend of 7.5 cents. The dividend will be paid on Sept. 10 to shareholders of record on Aug. 16.

Source: http://news.yahoo.com/gildan-activewear-3q-net-income-declines-133045820--finance.html

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