Gildan Activewear Raises EPS Guidance For Second Fiscal Quarter and 2005 Fiscal Year
06 April 2005 - 9:31PM
PR Newswire (US)
Gildan Activewear Raises EPS Guidance For Second Fiscal Quarter and
2005 Fiscal Year - Strong Quarterly Results Attributed To Higher
Than Anticipated Selling Prices, Combined With Growth As Planned In
Unit Sales Volumes - MONTREAL, April 6 /PRNewswire-FirstCall/ --
Gildan Activewear Inc. (GIL; TSX and NYSE) today announced that it
expects that its earnings for its second fiscal quarter, ended
April 3, 2005, will be above its previous guidance. The Company now
expects diluted E.P.S., before the special charge for the closure
of its Canadian yarn-spinning facilities, to be at least 10% above
the top end of its previously communicated guidance range of U.S.
$0.60 - U.S. $0.65 for the quarter. The special charge for the
yarn-spinning closure is estimated at approximately U.S. $0.26 per
share. The higher than anticipated growth in E.P.S. is primarily
attributable to more favourable selling price realizations for
Gildan's products in the quarter. In addition, Gildan has achieved
its planned targets for unit volume growth. The Company indicated
that it now expects full year diluted E.P.S. to be approximately
U.S. $2.80, before the special charge, and approximately U.S. $2.54
after the special charge, up from the Company's prior full year
guidance of approximately U.S. $ 2.60 and U.S. $2.34 respectively.
The Company continues to assume sequentially lower unit selling
prices in the second half of the fiscal year, together with
continuing capacity constraints which are not expected to be
alleviated until the first quarter of fiscal 2006. Gildan will
report its second quarter results on Thursday, May 5, 2005, before
market open, followed by a conference call that morning at 10:00
a.m. At that time, the Company will comment more fully on current
business conditions and on its outlook and guidance for the second
half of the fiscal year. Profile ------- Gildan Activewear is a
vertically-integrated manufacturer and marketer of premium quality
branded basic activewear for sale principally in the wholesale
imprinted activewear segment of the Canadian, U.S., European and
other international markets. The Company manufactures and sells
premium quality 100% cotton and 50% cotton/50% polyester T-shirts,
placket collar sport shirts and sweatshirts in a variety of
weights, sizes, colours and styles. The Company sells its products
as blanks, which are ultimately decorated with designs and logos
for sale to consumers. Gildan employs more than 8,000 full-time
employees. Certain statements included in this press release may
constitute "forward- looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. We refer you to the Company's filings
with the U.S. Securities and Exchange Commission and Canadian
securities regulatory authorities for a discussion of the various
factors that may affect the Company's future results. DATASOURCE:
GILDAN ACTIVEWEAR INC. CONTACT: Laurence G. Sellyn, Executive
Vice-President, Finance and Chief Financial Officer, (514)
343-8805,
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