Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the third quarter ended October 2, 2022.
The strength of their activewear business, driven by North American imprintables sales, together with the benefits from the vertically-integrated manufacturing model, allowed to deliver another strong quarter. These results are a testament to the progress Gildan is making under the Sustainable Growth strategy.
A record third quarter sales of $850 million, up 6% year-over-year, in activewear sales to North American imprintables, driven by higher net selling prices and sales volumes.
A strong gross margin performance of 29.7% in the quarter, despite inflationary cost pressures, and SG&A came in better than anticipated at 9.3% of sales, resulting in operating and adjusted operating margins of 20.5% and 20.0%, respectively, at the high end of their target range. With record sales and strong margin performance in the quarter, GAAP and adjusted diluted EPS totaled $0.84, with adjusted diluted EPS up 5% over the prior year.
Q3 2022 Operating Results
Net sales for the third quarter ended October 2, 2022, were $850 million, up from $802 million in the third quarter last year and consisted of activewear sales of $742 million, up 13%, and sales in the hosiery and underwear category of $108 million, down 26% over the prior year.