November 4, 2021
Gildan Activewear Reports Record Results for the Third Quarter of 2021
- Strong margin performance and demand momentum drives record results
- Record third quarter sales of $802 million, up 33% over prior year and 8% over Q3 2019
- Operating margin of 25.1%, adjusted operating margin1 of 21.5%
- Record GAAP diluted EPS of $0.95, adjusted diluted EPS1 of $0.80 up 167% over Q3 2020 and 51% vs Q3 2019
- Record third quarter free cash flow1 of $232 million, $478 million year-to-date
Montreal, Thursday, November 4, 2021 – Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the third quarter ended October 3, 2021.
“Our record performance for the third quarter was driven by the improved economics of our business, underpinned by our Back to Basics model, the operational excellence of our team and the ongoing recovery in demand, which drove sales volumes which are now above pre-pandemic levels,” said Glenn J. Chamandy, Gildan president and CEO. “Further, I feel confident that our team will continue to navigate through the tight supply chain environment, manage inflationary pressures and deliver results for our shareholders as we continue to move forward.”
We generated sales of $802 million for the quarter, up 33% over the prior year and 8% above the third quarter of 2019. Strong gross margin expansion drove operating margin of 25.1%, and adjusted operating margin of 21.5% which was up approximately 930 basis points versus last year and 500 basis points compared to the third quarter of 2019. Sales above pre-pandemic levels, combined with a stronger margin profile, drove record earnings for the quarter with GAAP diluted EPS of $0.95, and adjusted diluted EPS of $0.80 which was up 51% compared to the third quarter of 2019. Free cash flow of $232 million was also a record for a third quarter, bringing our year-to-date total to $478 million. Following our announcement of the restart of our normal course issuer bid (NCIB) program in August, we repurchased over 3.3 million common shares at a total cost of approximately $127 million during the quarter. Nonetheless, given the significant free cash flow generation in the quarter, our net debt1 position declined to $287 million, reducing our net debt to adjusted EBITDA1 ratio to 0.4 at the end of the quarter, leaving us with strong ongoing return of capital capability.
Read the full press release by clicking here.
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