Gildan Activewear Posts Profit In Line With View; Sees FY16 Results Below View

(RTTNews) - Gildan Activewear Inc. (GIL.TO, GIL), a supplier branded basic family apparel, reported Wednesday that its fourth-quarter net earnings were $67.6 million or $0.28 per share, compared with a net loss of $41.2 million or $0.17 per share in the same quarter last year.

Gildan reported adjusted net earnings of $68.9 million or $0.28 per share, compared with an adjusted net loss of $37.6 million or $0.15 per share last year.

On average, 16 analysts polled by Thomson Reuters expected earnings of $0.28 per share. Analysts' estimates typically exclude special items.

Consolidated net sales in the fourth quarter amounted to $543.8 million, up 39.2% from $390.6 million a year ago, reflecting an increase of 77.7% in Printwear segment sales and an increase of 12.4% in sales of Branded Apparel. Analysts were looking for $505.85 million sales.

Excluding the distributor inventory devaluation discount in the prior year quarter, consolidated net sales in the quarter were up 24%.

The Company also initiated guidance, reflecting higher sales and earnings for 2016.

For 2016, the Company is projecting adjusted earnings per share of $1.50 to $1.60 on projected consolidated net sales in excess of $2.6 billion, compared to adjusted earnings per share of $1.46 and net sales of $2.57 billion last year. Analysts expect earnings of $1.78 per share on sales of $2.72 billion.

Adjusted EBITDA for 2016 is projected to be approximately $545 - $570 million.

In addition, the Company announced a 20% increase in the amount of its quarterly dividend to $0.078 per share, and the initiation of a normal course issuer bid to repurchase up to approximately 5% of its issued and outstanding common shares.