MONTREAL — Gildan Activewear (TSX:GIL) says 2015 is shaping up to be less profitable than it previously expected.
The Montreal-based company says sales of from its Gildan branded clothing initiative are now expected to grow by only 12 per cent this year, compared with the previous estimate of 15 per cent.
It also says its printwear sales will grow by slightly less than 10 per cent, rather than slightly more than 10 per cent, because unseasonally warm weather is expected to reduce sales of high-value fleece and long-sleeved T-shirts.
Gildan is now estimating US$2.55 billion worth of sales this year, about $50 million below the previous estimate
It's also reducing its adjusted profit estimate for the current year by two to four cents per share, from the previous estimate of $1.50 per share.
The full year includes of 28 to 30 cents per share of adjusted earnings in Gildan's fourth quarter — three to five cents below the analyst estimate of 33 cents per share, according to Thomson Reuters.
The revised outlook was contained in Gildan's third-quarter results, which are reported in U.S. currency.
Third quarter net income was $123.1 million or 50 cents per share with $674.5 million of net sales in the quarter ended Oct. 4. Adjusted earnings were $126.4 million or 52 cents per share, which was one cent above analyst estimates.
A year earlier, Gildan's net income was $122.7 million or 50 cents per share with $666 million of sales. Adjusted net earnings for the quarter ended Oct. 5, 2014, was $50 cents per share.
The Canadian Press