Gildan Activewear (GIL) Misses Q2 EPS by 1c; Trims FY16 EPS Outlook

Gildan Activewear (NYSE: GIL) reported Q2 EPS of $0.41, $0.01 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $689 million versus the consensus estimate of $697.92 million.

The Company also continued to execute on its capital allocation priorities during the quarter. The acquisition of Alstyle was completed on May 26, 2016 and the Company began the implementation of its integration plan. On July 26, 2016, the Company entered into a definitive agreement to acquire Peds Legwear Inc. After completing in full the share repurchases under its current NCIB, the Company amended the program increasing it by an additional 3.5% of the common shares issued and outstanding as at February 19, 2016. Finally, during and immediately following the second quarter, the Company also raised $600 million of long-term debt in order to support its previously communicated debt leverage target.

GUIDANCE:

Gildan Activewear sees FY2016 EPS of $1.50-$1.55, versus prior guidance of $1.50-$1.60.

For earnings history and earnings-related data on Gildan Activewear (GIL) click here.

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