Montreal-based company Gildan Activewear Inc., known for its popular brands Gildan and American Apparel, recently announced its impressive first quarter earnings for 2021. The company reported a profit of $98.5 million, or $0.50 per diluted share, marking a significant improvement from a net loss of $99.3 million during the same period last year. This positive outcome can be attributed to the exceptional performance of Gildan’s activewear segment, which drove an impressive increase in sales.

During the first quarter, which ended on April 4, 2021, Gildan experienced a 28.4% surge in net sales, reaching $589.6 million compared to $459.1 million the previous year. The activewear segment witnessed remarkable sales growth of 30.1%, amassing $484.6 million in revenue, while the hosiery and underwear category saw a 21.4% increase, generating quarterly revenues of $105.0 million.

Gildan attributes the success of its activewear segment to a double-digit rise in unit sales volume in both North American and international markets, as well as strong performance in retail sales. Furthermore, the growth in the hosiery and underwear category was primarily driven by robust double-digit volume growth in underwear sales compared to the first quarters of 2020 and 2019.

Glenn J. Chamandy, Gildan’s president and CEO, expressed satisfaction with the company’s first-quarter results and celebrated the continued success of its “Back to Basics” strategy. He noted that this strategy has aided sell-through across all channels and contributed to a strong operating margin performance. Despite the absence of significant events due to the ongoing pandemic, Chamandy remains optimistic about the strength of Gildan’s imprintables business. He also highlighted the impressive double-digit growth in underwear and activewear sales compared to the first quarters of 2020 and 2019.

Looking towards the future, Gildan has refrained from providing any financial guidance for the second quarter or the full fiscal year 2021. Nevertheless, the strong performance in the first quarter demonstrates the company’s resilience and ability to adapt to challenging market conditions. With its well-established brands, Gildan continues to be a prominent player in the activewear industry.

Useful links:
1. Official Gildan Website
2. Official American Apparel Website