Gildan Activewear Inc. ((GIL,GIL.TO) reported net earnings of $56.0 million or $0.23 per share for the three months ended April 5, 2015, compared to $79.2 million or $0.32 per share in the corresponding quarter last year. Adjusted EBITDA decreased to $92.2 million from $109.2 million. Adjusted EPS was $0.24, for the quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.24 for the quarter. Analysts' estimates typically exclude special items.
Consolidated net sales amounted to $636.2 million, up 15.9% from $548.8 million in the corresponding quarter of the prior year, reflecting an increase of approximately 14% in Printwear sales and sales growth of approximately 20% in Branded Apparel. Analysts expected revenue of $630.74 million for the quarter.
The company said the EPS impact of higher sales revenues was more than offset by lower gross margins in both operating segments, together with increased SG&A and financing expenses, partially offset by lower income taxes.
The company narrowed its guidance range for adjusted EPS for the 12 months ending January 3, 2016 to $1.50 - $1.55 compared with its initial guidance of $1.50 - $1.57, to reflect the impact of the further devaluation of international currencies relative to the U.S. dollar. The company continues to project consolidated net sales slightly in excess of $2.65 billion. Adjusted EBITDA is now projected to be $525 - $540 million for the 12 months ending January 3, 2016. Analysts expect the company to report fiscal year earnings per share of $1.54 on revenue of $2.67 billion.
The company expects adjusted EPS of $0.43 - $0.45 for the June quarter, on projected sales revenues of approximately 750 million. Analysts expect the company to report second-quarter earnings per share of $0.46 on revenue of $771.95 million.
The company continues to believe that it is well positioned for earnings growth in calendar 2016.
The Board of Gildan Activewear has declared a cash dividend of $0.065 per share, payable on June 22, 2015 to shareholders of record on May 27, 2015.
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