Gildan Activerwear: Covid-19 leads to sharp decline in Q1 sales and earnings

Sales for the first quarter at Gildan Activerwear Inc., of 459.1 million dollars, were down 26.4 percent compared to the prior year quarter, comprised of activewear sales of 372.6 million dollars and sales in the hosiery and underwear category of 86.5 million dollars, down 24.5 percent and 33.7 percent, respectively. The company said in a statement that while it was anticipating an overall decrease in net sales for the first quarter, sales volume declines were higher than previously anticipated due to the significant downturn in demand as a result of the Covid-19 pandemic. The company reported net loss of 99.3 million dollars or 50 cents per share on a diluted basis compared to net earnings of 22.7 million dollars or 11 cents per share on a diluted basis, while adjusted net earnings in the quarter totalled 11.2 million dollars or 6 cents per share on a diluted basis, compared to adjusted net earnings of 32.8 million dollars or 16 cents per share on a diluted basis, in the first quarter last year.