News:


Gildan Sees Double-Digit Q4 Sales Growth, Announces Structural Changes

February 23, 2018

Gildan Activewear, Montreal, recently announced fourth-quarter sales growth of 11.2%, while reported earnings for the same period fell 24%.

The fourth-quarter earnings slump was attrtibuted to the company’s absorption of $11 million of restructuring and acquisition-related costs for covering organizational realignment and related management changes.

Gildan’s strong fourth-quarter sales growth was driven primarily by a strong finish in its printwear business, where sales grew 27.6% in the quarter or 22.5% on an organic basis, excluding the impact of the American Apparel acquisition in 2017. For the year that ended Dec. 31, sales totaled $2.75 billion, up 6.4% compared to the previous year and within Gildan’s previous sales guidance.

Adjusted EBITDA of $586.1 million for the year was in line with the company’s guidance range of $580-$590 million.


Effective Jan. 1, the company consolidated its organizational structure and implemented executive leadership changes to better leverage its go-to-market strategy across its brand portfolio and to drive greater operational efficiency across the organization. The company combined its printwear and branded apparel businesses into one consolidated divisional operating structure, centralizing marketing, merchandising, sales, distribution and administrative functions to better position Gildan to capitalize on growth opportunities within the evolving industry landscape, according to the company.

The combined organization will be led by Michael R. Hoffman, president, sales, marketing and distribution, who previously served as president of printwear. Eric Lehman, previously president of branded apparel, announced he will leave the organization to pursue other opportunities, effective June 30 and following the integration of the two segments. The combination of the two operating businesses is intended to drive a leaner and more streamlined organization, which is expected to provide operational efficiencies as the company leverages a common infrastructure to maximize the growth potential of its brands.

Anticipated cost savings in 2018 will be initially reinvested in distribution and e-commerce activities, according to the company. — J.L.


More News