(Filed Under Financial and General Interest News). Fueled by lower manufacturing, cotton and energy costs and strong sales in activewear and underwear, Gildan Activewear Inc. reported a 33.5 percent increase in net sales during the second quarter ended April 4, 2010. Net sales were $326.8 million compared to $244.8 million during last year’s second quarter.
Activewear and underwear sales jumped a combined 51 percent, to $273.2 million. According to the company, its success in these channels was the result of higher market sales in the U.S. wholesale distributor channel, a 3.4 percent increase in overall industry demand in the U.S. distributor channel, and a significant increase in the volume of underwear and activewear shipments to retail customers. According to Gildan, the second quarter of this year was the first quarter since 2008 to benefit from positive growth in overall industry demand in the U.S. distributor channel. The positive trend continued to improve during each month of the quarter, with the industry growing 8.9 percent in March, the company reported.
Sock sales decreased 16.3 percent, which the company attributed primarily to the timing of replenishment and the transition to new programs for mass-market retailers, which it said are expected to benefit sock shipment during this year’s second half.
If market conditions continue to improve, Gildan projected that its full year sales revenues will increase by approximately 25 percent.
Gildan is a Montreal-based, vertically integrated marketer and manufacturer of branded basic apparel, including underwear, activewear and socks.
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