Gildan Activewear has posted an increase in both sales and net earnings for its fourth quarter, boosted by a strong performance in its hosiery and activewear sectors. Confirming the ramp up of its ongoing capacity increases, including the construction of its large-scale, low-cost manufacturing complex in Bangladesh, Gildan reported a 9% increase in net sales to $782.7. Net earnings were up 82% to $153.3.
“Outstanding operational execution by our highly skilled team of employees across our global footprint delivered strong Q4 results” said Vince Tyra, President and CEO. “As the company celebrates its 40th anniversary this year, I see a bright future ahead, where we can leverage our strengths and continue to enhance value for all stakeholders.
“Since joining the company, I’ve had the opportunity to visit with hundreds of employees in Montreal and Honduras and I’ve met with many of our key customers during the recent industry trade shows in Las Vegas, Nevada and Long Beach, California, which fuelled my excitement for the future.”
The 8% increase in activewear sales to $644 mn was mainly attributed to higher volumes, driven by POS as well as higher levels of customer replenishment than the prior year. POS also reflected strength in key product categories including fleece and ring spun products, which also drove a favourable mix. International sales were down 24% reflecting continued macro-economic challenges in these markets and the lack of inventory replenishment compared to the prior year.
In the hosiery and underwear category, the 11% increase in sales to $139 mn was mainly due to higher volumes, driven by a combination of better POS and the rollout of new programs in the mass retail channel. For the full year ended December 31, 2023, net sales of $3.2 bn were down 1% year over year, as expected, reflecting a decrease of 3% in Activewear sales and a 10% increase in the Hosiery and underwear category.
Activewear sales of $2.6 bn were down $95 mn, primarily due to lower sales volumes compared to the prior year where Gildan saw stronger levels of distributor inventory replenishment, partly offset by slightly higher net selling prices. The strong performance in the Hosiery and underwear category, with sales of $528 mn, up $50 mn, was driven by growth stemming from the expansion of Gildan’s private label offering and the roll-out of new underwear programs in the mass retail channel, as well as strength in hosiery.
