Gildan Activewear Inc., the Canadian producer of cotton T-shirts to underwear, rose to a record after reporting third-quarter earnings at the high end of the company’s guidance and analysts’ estimates.
Gildan rose 4.7 percent to C$47.97 at the close in Toronto, the highest since the company went public in June 1998 and the biggest one-day jump since August, 2012. The shares have gained 32 percent this year, compared with a 1.3 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.