Gildan Activewear Cuts FY Outlook - Quick Facts

(RTTNews) - Gildan Activewear Inc. (GIL, GIL.TO) said it now projects adjusted earnings per share for the 12 months ending January 3, 2016 to be in the range of $1.46 - $1.48 on projected sales of close to $2.55 billion. Analysts polled by Thomson Reuters expect the company to report earnings of $1.50 per share and revenues of $2.58 billion for fiscal year. Analysts' estimates typically exclude special items. The company's most recent guidance was for adjusted diluted earnings per share of approximately $1.50 on projected net sales of close to $2.6 billion.

Sales growth in Printwear for the full calendar year is now projected to be close to 10% compared to the Company's previous projection of Printwear sales growth in excess of 10%. The projected slight reduction in Printwear sales is due to unfavourable product-mix in the fourth quarter as warmer seasonal weather is expected to result in lower seasonal sales of high-value fleece and long-sleeve T-shirts.

Branded Apparel sales growth for the full calendar year is now expected to be approximately 12% compared to previously anticipated sales growth of approximately 15%. The lower projected sales growth in Branded Apparel primarily reflects the sales shortfall in the third calendar quarter and the assumption of the continuing impact of issues with retailer inventory replenishment combined with soft retail market conditions in the fourth calendar quarter of 2015.

Adjusted EBITDA for the 12 months ending January 3, 2016 is now projected to be in excess of $500 million. Capital expenditures are now projected to be approximately $250 million compared to the Company's previous guidance range of $250 - $300 million.

The Company projects adjusted earnings per share of $0.28 - $0.30 for the fourth- quarter, on projected sales revenues in excess of $500 million, compared with an adjusted net loss of $0.15 per share on sales revenues of $390.6 million in the corresponding quarter of the prior year. Analysts expect the company to report earnings of $0.52 per share and revenues of $702.79 million for the fourth-quarter.

Projected net earnings for the fourth quarter of calendar 2015 are expected to be a record for a fourth calendar quarter and up by more than 60% compared to the previous record in the fourth calendar quarter of 2013.

The Company's projected results for the fourth calendar quarter reflect expected continued unit volume growth in both operating segments, including the impact of new retail program shipments in Branded Apparel and the impact of the acquisition of Comfort Colors.

The Board of Directors has declared a cash dividend of $0.065 per share, payable on December 14, 2015 to shareholders of record on November 27, 2015.