Clothing supplier Gildan Activewear has reported record sales and earnings for the three months to July this year despite rising costs and inflationary pressures.

In the second quarter of 2022, the group generated sales of $896 million (£738 million), up 20% over the same period in 2021, driven by its business that manufactures blank garments. It followed record results for 2021 and the first quarter of 2022.

In the three months to 3 July, it generated gross and adjusted gross profit of $265 million (£218 million) – an increase compared to the same quarter in 2021 when gross profit was $241 million (£198.5 million) and adjusted gross profit was $228 million (£188 million).

The sales of activewear, which includes blank garments, improved because of higher net selling prices, which reflected base price increases and lower promotional discounting this year.

Gildan also said it benefited from a “favourable” product mix and higher activewear shipments in North America. However, it was affected by lower international shipments due to demand weakness in Asia.

The group’s smaller business supplying hosiery and underwear saw a sales decline, driven by lower unit sales, partly due to softening demand in retail.

Gildan warned that it had seen “some slowing” as it moved into the second half of 2022 but it posted a positive message about its future outlook despite “a continued environment of inflationary cost pressure”.

“We believe the recovery of large events and travel and tourism remains a tailwind to demand, which is supported by the feedback we are getting from our major imprintables distributors.”

The Montreal-based group has also benefited from its previous Back to Basics cost-saving initiatives and its current “Gildan Sustainable Growth” (GSG) plan for driving growth through capacity expansion, innovation, and environmental, social and governance (ESG) objectives.

Gildan’s president and CEO, Glenn J Chamandy, said: “We are pleased with our record sales and earnings for the quarter, underpinned by the Gildan Sustainable Growth strategy, including our focus on innovation and ESG.

“Furthermore, our first-half performance points to the tight control we currently have over our supply chain and cost structure, which puts us in a good position to support our customers’ demand as we move through the remainder of the year.”

www.gildancorp.com