Bulletin
Investor Alert

Market Pulse Archives

Oct. 17, 2019, 5:22 p.m. EDT

Gildan cuts guidance on weaker demand, stock falls 12%

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Gildan Activewear Inc. (GIL)

or Cancel Already have a watchlist? Log In

By Claudia Assis

GIL

Shares of Gildan Activewear Inc. /zigman2/quotes/201055793/composite GIL +1.05% tanked 12% in the extended session Thursday after the apparel maker cut guidance for the year and called for a 7% drop in quarterly profit. Gildan said it expects to report third-quarter GAAP per-share earnings of about 51 cents a share, and adjusted EPS of about 53 cents a share, both down 7% over the third quarter of 2018. Third-quarter sales are seen around $740 million, 2% lower than the same quarter last year. A previous guidance on Aug. 1. called for adjusted EPS growth to be flat in the third quarter on a projected sales growth. Gildan said it experienced "significantly weaker-than-expected demand for imprintables in North America and ongoing softness in international imprintable markets." Gildan mostly makes plain T-shirts and fleeces that users go on to customize with their own logos and messages. The guidance cut reflects a sales shortfall around $50 million, and presumes that the demand weakness for imprintables both in North America and internationally "will persist through the fourth quarter," the company said. Gildan stock ended the regular trading day up 0.3%. The company is scheduled to report third-quarter results on Oct. 31 before the open. Gildan in Marchwarned of an earnings hit from a debt write-off.

/zigman2/quotes/201055793/composite
US : U.S.: NYSE
$ 27.24
+0.28 +1.05%
Volume: 913,342
Nov. 13, 2019 6:30p
P/E Ratio
19.52
Dividend Yield
1.97%
Market Cap
$5.49 billion
Rev. per Employee
$58,209
loading...

Get news alerts on Gildan Activewear Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.