Gildan Activewear Updates 2016 Guidance; To Acquire Peds Legwear - Quick Facts

(RTTNews) - Gildan Activewear Inc. (GIL.TO, GIL) announced, for full year 2016, the company is now projecting adjusted EPS to be in the range of $1.50-$1.55 compared to prior range of $1.50-$1.60, and adjusted EBITDA of approximately $545-$555 million compared to the previous projection of $545-$570 million.

Gildan Activewear now expects consolidated net sales for the year to be approximately $2.65 billion reflecting projected sales of approximately $1.65 billion in Printwear and Branded Apparel sales of approximately $1 billion. This compares to the prior guidance of sales in excess of $2.6 billion.

Analysts polled by Thomson Reuters expect the company to report profit per share of $1.59 on revenue of $2.67 billion. Analysts' estimates typically exclude special items.

Consolidated net sales in the second quarter of 2016 amounted to $688.9 million, down 3.5% compared to the second calendar quarter of 2015, reflecting sales decreases of 1.4% in the Printwear segment and 7.9% in Branded Apparel.

Net earnings totaled $94.7 million or $0.40 per share for the three months ended July 3, 2016, compared to $99.4 million or $0.41 per share for the three months ended July 5, 2015. Excluding after-tax restructuring and acquisition-related costs of $1.7 million in the quarter and $3.2 million in the same quarter last year, Gildan reported adjusted net earnings of $96.4 million, or $0.41 per share for the second quarter of 2016, slightly down from $102.6 million, or $0.42 per share in the prior year quarter.

Gildan Activewear also announced it has signed a definitive agreement to acquire 100% of the equity interest of Peds Legwear Inc. (Peds) for a total cash consideration of $55 million. The acquisition is expected to close before the end of August 2016.