Free Post Earnings Research Report: Gildan’s Quarterly Revenue Grew 11.2%, Beat Estimates

Stock Monitor: Oxford Industries Post Earnings Reporting

LONDON, UK / ACCESSWIRE / April 6, 2018 / Active-Investors.com has just released a free earnings report on Gildan Activewear Inc. (NYSE: GIL) (“Gildan”). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GIL. Gildan reported its fourth quarter fiscal 2017 operating and financial results on February 22, 2018. The apparel maker’s quarterly earnings were in-line with market estimates. The Company also initiated guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Oxford Industries, Inc. (NYSE: OXM), which also belongs to the Consumer Goods sector as the Company Gildan Activewear. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=OXM

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Gildan Activewear most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=GIL

Earnings Highlights and Summary

Gildan’s consolidated net sales of $653.7 million for Q4 2017 advanced 11.2% compared to sales of $587.9 million in Q4 2016 and reflected a sales increase of 27.6% in the Printwear segment, including the impact of the acquisition of American Apparel. The Company’s reported numbers beat analysts’ estimates by $17.95 million.

During Q4 2017, Gildan’s consolidated gross margin increased 40 basis points to 27.1% versus the prior year’s comparable quarter. The increase was mainly due to higher net selling prices and favorable product mix in Printwear. The Company’s consolidated selling, general, and administrative (SG&A) expenses as a percentage of sales were 15.9% in the reported quarter, up from 14.8% in the prior year’s same quarter, primarily due to the impact of the American Apparel acquisition, lower fixed cost absorption in Branded Apparel, and higher distribution and e-commerce expenses.

Gildan’s consolidated operating margin and adjusted operating margin in Q4 2017 were 9.5% and 11.2%, respectively, down from consolidated operating margin and adjusted operating margin of 11.9% in Q4 2016.

For Q4 2017, Gildan’s net earnings totaled $54.9 million, or $0.25 per diluted share, compared to net earnings of $74.3 million, or $0.32 per share, for Q4 2016. Excluding after-tax restructuring and acquisition-related costs of $12.7 million in the reported quarter and $0.2 million in the prior year’s corresponding quarter, the Company reported adjusted net earnings of $67.6 million, or $0.31 per diluted share, for Q4 2017, down from $74.5 million, or $0.32 per diluted share, in Q4 2016. The decline in adjusted diluted earnings per share (EPS) versus the prior year was primarily due to the expected non-recurrence of the income tax recovery in Q4 2016. Gildan’s earnings met Wall Street’s estimates of $0.31 per share.

Gildan’s consolidated net sales for full-year 2017 were $2.75 billion up 6.4% compared to sales of $2.59 billion in FY16.

For FY17, Gildan’s net earnings were $362.3 million, or $1.61 per diluted share, compared to $346.6 million, or $1.47 per diluted share, for FY16. Before reflecting after-tax restructuring and acquisition-related costs in both years, adjusted net earnings were $386.9 million, or $1.72 per share, for FY17 compared to $356.3 million, or $1.51 per share, in FY16.

Segmented Operating Results

During Q4 2017, Gildan’s Printwear sales jumped 27.6% to $415.6 million from $325.8 million in Q4 2016, primarily due to strong unit sales volume growth in both domestic and international markets, the benefit of favorable product mix, a $16.6 million sales contribution from American Apparel, and higher net selling prices. Excluding the impact of the American Apparel acquisition, the segment’s sales in the reported quarter increased 22.5% organically.

Operating income in Printwear totaled $82.8 million for Q4 2017, up 20.7% compared to $68.6 million in Q4 2016 driven by the increase in sales. The segment’s operating margins were 19.9% in the reported quarter, down 110 basis points compared to the year-ago same period, primarily due to higher raw material costs, expenses related to unanticipated production shutdowns as well as increased SG&A expenses, higher distribution costs, and expenses related to the further development of the Company’s e-commerce infrastructure.

For Q4 2017, Gildan’s net sales for the Branded Apparel segment were $238.1 million, down 9.2% from $262.1 million in Q4 2016 mainly due to lower unit sales volumes of socks and activewear, unfavorable product mix driven by a lower proportion of sales of higher-priced socks and activewear, and the impact of the planned exit of certain private label programs.

For the reported quarter, operating income in Branded Apparel unit was $16.8 million, down from $24.0 million in the year-ago same period. The segment’s operating margins for the reported quarter were 7.1% compared to 9.1% in the prior year’s comparable quarter.

Cash Matters

During Q4 2017, Gildan generated strong free cash flow of $165.7 million which contributed to another record year for free cash flow, totaling $519.2 million for FY17, up 30.3% over the prior year. Pursuant to its normal course issuer bid (NCIB) program, the Company repurchased 1.7 million common shares at a total cost of $52.1 million during Q4 2017 and completed repurchases of 11.5 million common shares for FY17 at a total cost of $328.6 million. Gildan’s net debt at the end of 2017 amounted to $577.2 million and the Company’s leverage ratio was 1.0 times net debt to adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for 2017.

Outlook

Gildan initiated guidance for FY18, projecting adjusted earnings in the range of $1.80 to $1.90 per diluted share, which at the mid-point of the guidance range represents growth of approximately 7.5% over FY17, on projected net sales growth in the low to mid-single-digit range. The Company’s adjusted EBITDA for FY18 is expected to be in the range of $595 million to $620 million. The Company is also projecting to generate free cash flow of approximately $400 million for FY18.

Stock Performance Snapshot

April 05, 2018 – At Thursday’s closing bell, Gildan Activewear’s stock was marginally up 0.31%, ending the trading session at $29.49.

Volume traded for the day: 395.87 thousand shares.

Stock performance in the last month – up 1.41%; and past twelve-month period – up 12.82%

After yesterday’s close, Gildan Activewear’s market cap was at $6.41 billion.

Price to Earnings (P/E) ratio was at 18.32.

The stock has a dividend yield of 1.53%.

The stock is part of the Consumer Goods sector, categorized under the Textile-Apparel Clothing industry. This sector was up 0.6% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third-party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors

ReleaseID: 495323