Gildan CEO Glenn Chamandy smiles after the company's annual meeting in Montreal in May, 2024.Christinne Muschi/The Canadian Press
Gildan Activewear Inc. GIL-T reported a loss of US$65.8-million in its latest quarter compared with a profit of US$84.7-million a year ago as it faced costs related to its purchase and integration of Hanesbrands Inc.
The Montreal-based clothing maker, which keeps its books in U.S. dollars, says the loss amounted to 36 US cents per share for the quarter ended March 29 compared with a profit of 56 US cents per share a year earlier.
On an adjusted basis, Gildan says it earned 43 US cents per diluted share from continuing operations in its latest quarter, down from 59 US cents per diluted share in the same quarter last year.
Gildan to capture more cost savings from Hanesbrands takeover than previously expected
Net sales totalled US$1.17-billion for the quarter, up from US$711.7-million a year earlier.
Shares in the company were up $4.94 at $81.91 in late-morning trading on the Toronto Stock Exchange after the release of the results for Gildan’s first full quarter that included Hanesbrands consolidated into its financial results.
Looking ahead, Gildan said the integration of Hanesbrands is progressing as planned and it is on pace to realize about US$100-million in synergies in 2026 and continues to expect about US$250-million of annual run-rate cost synergies over the next three years.