Gildan Activewear, the Canadian clothing company known for its wide range of apparel, including activewear, underwear, and socks, has adjusted its earnings and sales guidance for the year due to a softening demand in specific markets. While the company exceeded market expectations in the third quarter, it now anticipates full-year revenue and adjusted per-share earnings to be at the lower end of its previous targets.
In August, Gildan had already revised its financial guidance, forecasting either flat or slightly declining revenue for the year instead of the low-single-digit growth originally anticipated. The adjusted earnings projection was also adjusted, with a range of $2.55 to $2.65 per share, including the impact of future share buybacks in 2023. This was in contrast to the previous goal of achieving earnings in line with last year's record of $3.11 per share.
Strong Q3 Performance
Despite the revised outlook, Gildan reported impressive third-quarter results. The company's adjusted earnings reached 74 cents per share, surpassing the average forecast of 71 cents by 11 analysts surveyed by FactSet. Furthermore, sales for the quarter amounted to $869.9 million, a 2.3% increase compared to the expected $843.1 million.
Gildan Activewear will continue to monitor market conditions closely as it navigates these challenges and strives to deliver consistent value to its shareholders.