Gildan Reaches Record as Branded Wear Boosts Pofit

Gildan Reaches Record as Branded Wear Boosts Pofit

Gildan Activewear Inc. (GIL), the Canadian producer of cotton T-shirts to underwear, rose to a record high after reporting third-quarter earnings at the high end of the company’s guidance and analysts’ estimates. Gildan rose 4.7 percent to C$48.15 at 11:00 a.m. in Toronto. Earlier it rose 6.6 percent to C$48.86 earlier, the highest since the company went public in June 1998 and the biggest intraday jump since June 12, 2012. The shares have gained 26 percent this year through yesterday, compared with a 0.4 percent rise in the Standard and Poor’s/TSX Composite Index. Montreal-based Gildan posted earnings of $116.5 million or 95 cents per share, adjusted for certain items, compared with $80.2 million or 66 cents a year earlier. The company previously projected earnings of 92 cents to 95 cents per share. Results beat the 94-cent average of analysts’ estimates compiled by Bloomberg. “The company began shipment of its first major Gildan-branded underwear program to a national mass-market retailer,” the company said today in a statement. “Initial retailer sales of the Gildan underwear products are very strong, and consumer demand is well in excess of expectations.” Gildan acquired New Buffalo Shirt Factory Inc. manufacturing facilities on June 21, providing it with screenprinting and decorating capabilities to enhance its ability to act as a supply chain partner for larger athletic and lifestyle brands. Gildan narrowed its full year adjusted earnings expectation to $2.67 to $2.70 per share, from its previous guidance range of $2.65 to $2.70.

To contact the reporter on this story: Lauren S. Murphy in Toronto at lmurphy48@bloomberg.net

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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