Printwear & Promotion The Total Promotional Package
Gildan generated sales of $747 million during the second quarter of 2021, up 225% compared to last year.
However, sales were down 7% compared to the record second quarter seen in 2019.
Glenn J. Chamandy, CEO, said: “Our business continued to build momentum during the second quarter as economic activity in North America trended positively and the power of our Back to Basic strategy continued to drive stronger profitability.”
This increase is sales was driven primarily by higher sales volumes and favourable product mix. Activewear sales in the second quarter of 2021 totalled $597 million, up 353% over the prior year. The increase reflected significantly higher unit sales volumes in all markets, particularly imprintables, driven by the strong recovery in point-of-sales and the non-recurrence of significant distributor inventory destocking which occurred in the second quarter last year.
Net sales for Gildan for the six months ended July 4, of $1,336 million were up 94% over the same period last year. The year-over-year increase in activewear sales, where Gildan generated $1,081 million was primarily driven by volume increases in all channels and favourable product-mix.
Gildan is encouraged by the recovery seen in business in North America, although recovery outside of North America remains weak. On the supply chain side, Gildan continues to monitor the US labour shortages which have been affecting yarn production and the ability to rebuild high inventory levels. Gildan also reports seeing tightness in raw material inputs and transportation-related factors globally which are creating inflationary pressure. Consequently, Gildan remains cautiously optimistic as the recovery progresses.
