Gildan Reports Financials, Lands Walmart Contract
Gildan reports its third-quarter earnings and lands a contract with retail giant Walmart.
MONTREAL-Gildan reports its third-quarter earnings and lands a contract with retail giant Walmart. The company’s full financials were released on Nov. 1, and a news release by Bloomberg details the agreement.
In the report, Gildan cities a net sales increase of five percent. The company credits this increase to double-digit growth in activewear. Gildan says it also sees growth in the imprintable fashion basics market and reports that international sales are up 28 percent for the quarter. In addition to growth and profits, the company points out that the 2018 hurricane season caused some setbacks.
“During the third quarter, sales growth was constrained due to the impact of Hurricane Florence in September, which disrupted the company’s distribution operations in the Carolinas, impacting overall sales by approximately $30 million in total,” says Gildan in the report.
In the Bloomberg report, Gildan says the agreement with Walmart sees the apparel manufacturer producing men’s underwear for the retailer. The contract takes effect in 2019, according to the report. Under the new contract, Bloomberg says that Gildan “will no longer sell its eponymous underwear” and instead shelf space devoted to its products which are projected to grow by 50 percent at Walmart.
The move comes as retail outlets like Walmart continue to re-tool their approach to competing with Amazon’s growing private-label apparel and accessories line AmazonBasics. Walmart has been one of the busiest contenders in this market, continually acquiring lifestyle brands, like the Oct.2 acquisition of plus-size clothing brand Eloquii.
To see Gildan’s full third-quarter earnings report, visit http://bit.ly/2JyjWq1.
