Gildan Activewear reports record full-year sales despite lacklustre Q4

By

Benjamin Fitzgerald

Published
Feb 22, 2023

Canada's Gildan Activewear announced on Wednesday record revenues for the full-year 2022, despite clocking a single-digit decline is sales for the fourth quarter, brought down by hosiery and underwear sales.

The Montreal-based company said revenues for the twelve months ending January 1 increased 11% to $3.2 billion, reflecting a 17% increase in activewear sales to to $2.8 billion, partially offset by a decline of 14% in the hosiery and underwear category, which clocked sales of $478 million for the year.

While annual sales witnessed double-digit growth, the owner of its namesake Gildan brand, as well as American Apparel and Peds, and the licensor of Under Armour, said fourth-quarter sales dipped 8% to $720 million, with activewear sales falling 5% to $595.4 million, and hosiery and underwear sales plummeting 20% to $124.6 million for the quarter.

Net income for the year fell 10% to $541.5 million, while quarterly net income dived 52% to $83.9 million, the company added.
 
“I am extremely proud of our team’s record performance in 2022 with revenue up 11% over 2021 and strong margin delivery in every fiscal quarter,” said Glenn Chamandy, president and CEO of Gildan.

“And despite near term headwinds related to the economic environment, which impacted our performance in the fourth quarter, and which may persist through the first part of 2023, we remain excited about the Gildan ‘Sustainable Growth’ strategy, as well as our strong competitive positioning and ability to support our customers, as we work towards delivering on our long-term growth aspirations.”

Moving into 2023, Gildan said expect it expects its last quarter “headwinds to abate, enabling us to resume our growth trajectory and our path towards delivering on our performance targets.”

Accordingly, for 2023, the company expects revenue growth for the full year to be in the low single digit range.