Gildan Activewear has announced its results for the third quarter of 2020.

Ending 27 September, results for the third quarter reflected a strong improvement from the second quarter, despite ongoing Covid-19 impacts, explained Gildan.

“We generated sales of $602 million, up sequentially from $230 million in the second quarter this year, and returned to a profit with GAAP diluted EPS of $0.28 and adjusted diluted EPS of $0.30.

“Cash flow was strong with the company generating free cash flow of $137 million in the quarter, with free cash flow generation over the last two quarters now totalling over $300 million.

“From a sales perspective, point of sales levels in the imprintables channel, although down on a year-over-year basis, remained relatively stable through the third quarter, while sales to retailers were up year-over-year.

“Increased capacity utilisation and improved product-mix in the third quarter led to a significant sequential improvement in gross margin, which totalled 22.5%. Further, our strong focus on cost control translated to SG&A expenses totalling 10.2% of third quarter sales, with expenses down 22% on a year-over-year basis.”

Gildan added that its production is ramping up to meet demand, with 75% of pre-Covid manufacturing capacity back on-line at the quarter-end.

Glenn J. Chamandy, president and CEO of Gildan, commented: “We were pleased with the recovery of our sales and earnings during the third quarter. Retail sales performance was driven by momentum in underwear, and while the lack of large events continues to impact imprintable channels we are nonetheless seeing areas of opportunity.

“Further, we continue to be pleased with the results we are seeing from our ‘Back to Basics’ strategy as we continue to place a strong focus on meeting our customers’ needs and growing market share through simplification of our product portfolios, removal of cost and complexity from our business and fully leveraging our world class, sustainably-focused, vertically-integrated manufacturing platform.”

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