Gildan opts for restructuring as printwear segment climbs
Following mixed full year and fourth quarter results, Gildan Activewear Inc. has introduced a new organizational realignment in order to cut costs, along with related executive management changes.
The Montreal-based apparel manufacturer, which expects sales of the American Apparel brand it acquired last year to double in 2018, has consolidated its printwear and branded apparel segments since January 1.
The combination is expected to allow the company to “better leverage its go-to-market strategy across its brand portfolio” and “drive greater operational efficiency across the organization,” Gildan said, in a press release.
As a result of the consolidation, Michael R. Hoffman, who is currently president of the printwear segment, will take on an expanded role as President, Sales, Marketing and Distribution, while Eric Lehman, Gildan’s president of Branded Apparel since 2011, will leave the company at the end of June.
The Canadian maker of apparel, including t-shirts, socks and underwear reported consolidated net sales of $2,750.8 million for the full year ended December 31, up 6.4 percent over last year.
Though net sales for the branded apparel segment fell for a second quarter by 0.6 percent to $928 million, sales of its printwear segment climbed 10.4 percent, hitting $1,822.0 million.
Meanwhile, in its fourth quarter, consolidated net sales climbed 11.2 percent hitting $653.7 million. Printwear sales in the fourth quarter were $415.6 million, up 27.6 percent, including the impact of the acquisition of American Apparel, while net sales for the Branded Apparel segment in the quarter were $238.1 million, down 9.2 percent from $262.1 million in the fourth quarter of 2016.
Looking ahead, Gildan said it expects to earn $1.80 to $1.90 in adjusted diluted earnings in 2018, and that sales will grow around 7.5 percent this year.
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