Home breadcru News breadcru Results/Reports breadcru Gildan Activewear Q2 FY20 sales down to $230 mn

Gildan Activewear Q2 FY20 sales down to $230 mn

04 Aug '20
2 min read
Pic: Gildan Activewear
Pic: Gildan Activewear

Gildan Activewear, a Canadian manufacturer of branded clothing, has reported 71.3 per cent sales decline to $229.7 million in its second quarter (Q2) fiscal 2020 ended on June 28, 2020 compared to sales of $801.6 million in same period last year. Company incurred net loss of $249.7 million compared to net earnings of $99.7 million in Q2 FY19.
 
“Against the challenging backdrop of the pandemic and the difficult but necessary actions we have taken, we have accelerated efforts under our Back to Basics strategy to further simplify our product portfolios, remove complexity and cost from our business, better support our customers and drive long term market share growth,” Glenn Chamandy, president and CEO of Gildan Activewear, said in a press release.
 
Gross loss during the quarter were $148.5 million ($222.8 million). SG&A (selling, general & administrative) expenses dropped 29.5 per cent to $64.9 million ($92.0 million). 
 
Gildan's sales of activewear segment during Q2 FY20 slipped 80.2 per cent to $131.6 million ($665.6 million) primarily due to lower sales volumes of imprintables in North America which were down approximately 75 per cent in the quarter. Whereas hosiery and underwear sales came down 27.9 per cent to $98.1 million ($136.0 million). 
 
Geographically, sales in US fell 72.8 per cent during Q2 FY20 to $185.7 million ($683.9 million). Canada registered a sales decline of 68.5 per cent to $8.6 million ($27.3 million). International sales plunged 60.9 per cent to $35.4 million ($90.5 million).
 
Company stated that while results for the second quarter were significantly impacted by Covid-19 pandemic, it is encouraged by certain signs of recovery, particularly as point of sales (POS) trends during the quarter which performed better than expected across all channels.

ALCHEMPro News Desk (JL)

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