Canadian Manufacturing

Gildan Activewear misses expectations as COVID-19 drives down sales

The Montreal-based company says it lost US$249.7 million

July 30, 2020  The Canadian Press

MONTREAL — Gildan Activewear Inc. missed expectations as it reported a large second-quarter loss after sales plunged 71% amid widespread closures of customer stores because of COVID-19.

The Montreal-based company, reporting in U.S. dollars, says it lost US$249.7 million or US$1.26 per diluted share, compared with a profit of US$99.7 million or 49 cents per share a year earlier.

The results included US$224 million of charges, including $131 million that were COVID-related and US$93 million for initiatives to simplify its offering and cut costs.

Excluding one-time items, the adjusted net loss was US$196.6 million or 99 cents per share, down from a net income of US$115 million or 56 cents per share in the prior year’s quarter.

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Revenues for the three months ended June 28 were US$229.7 million, compared with US$801.6 million in the second quarter of 2019.

Gildan was expected to report 41 cents per share in adjusted losses on US$241.4 million in revenues, according to financial markets data firm Refinitiv.

“Despite the impact of the COVID-19 pandemic, we maintained a strong focus on our key priorities, including the health and safety of our employees and the long-term positioning of our business,” said CEO Glenn Chamandy in a prepared statement.