Gildan Q4 Earnings Miss Estimates; Hikes Dividend; To Cut Prices In Printwear

(RTTNews) - Gildan Activewear Inc. (GIL, GIL.TO) Thursday reported a rise in earnings for its fiscal fourth quarter amid a 6.4 percent growth in sales. Earnings, however, missed analysts' estimates

Net earnings totaled $122.68 million, or $1.00 per share, up from $96.78 million, or $0.79 per share, a year earlier.

On average, thirteen analysts polled by Thomson-Reuters estimated earnings to be $1.08 per share. Analysts' estimates typically exclude one-time items.

Net sales increased to $666 million, from $626.2 million a year earlier. Analysts expected sales of $713.4 million.

The company said it's experiencing strong replenishment orders in the December quarter.

For the three months to January 4, 2015, the company expects a net loss of around $0.30 per share on sales of about $400 million.

For the fiscal year ended January 3, 2016, the company expects earnings of $3.00 to $3.15 per share, on an adjusted basis, on sales of around $2.65 billion.

The board recommended a 20 percent rise in quarterly dividend, and recommended a $0.13 per share dividend that is payable on January 12, 2015 to shareholders of record on December 18.

The company said it will cut base selling prices in the printwear segment, as it seeks to pass through potential cost savings in new yarn-spinning facilities. The price reduction also reflect lower price of cotton futures in recent months, the company said in a news release.