Gildan Activewear Inc. reported lower than expected results as its second-quarter profit dropped due to price cuts it made to its clothing sold to screenprinters.
The company says the price cuts to for its printwear were partly offset by higher sales and margins in its branded clothing and lower taxes.
Gildan, which keeps its books in U.S. dollars, says it earned $99.4-million (U.S.) or 41 cents per diluted share for the quarter ended July 5, compared with a profit of $116.0-million or 47 cents per diluted share a year ago.
Consolidated net sales in the quarter totalled $714.2-million, up from $693.8-million in the same quarter last year.
On an adjusted basis, Gildan says it earned a profit of 42 cents per diluted share, below the guidance it provided in May for adjusted earnings between 43 and 45 cents per share.
The company attributed the miss to lower than anticipated net sales.