By Adriano Marchese

Gildan Activewear's profit fell in the fourth quarter while sales topped expectation thanks to market share gains and a strong performance in its activewear category.

The Canadian apparel manufacturer reported a lower net income of $132.3 million, or 86 cents a share, down from $153.3 million, or 89 cents a share, in the comparable quarter a year ago.

Adjusted earnings came to 83 cents a share. According to a FactSet poll, analysts were expecting 81 cents a share.

Sales rose above expectations to $821.5 million from $782.7 million. Analysts were expecting a more modest rise of $804 million.

In the quarter, the company logged activewear sales of $714 million, up 11% thanks to higher sales volumes. On the point-of-sale side, Gildan said that trend was positive across channels and product lines and continued to capture market share in what it considers key growth categories.

On the international front, sales increased 20% year-over-year.

However, in its hosiery and underwear categories, net sales were down 23%, due largely to the phase out of its Under Armour business.

Looking ahead to the current year, Gildan expects revenue growth in the mid-single digits from 2024's $3.27 billion. Analysts on FactSet expect a rise to $3.4 billion.

Adjusted EPS are forecasted to come in between $3.38 and $3.58. Analysts expect $3.47 a share.

In May of last year, activists investors led by the Browning West, a Los Angeles-based investment firm, won a victory through the resignation of the entire incumbent board and the reinstatement of co-founder Glenn Chamandy as chief executive in a dramatic reversal from less than six months prior when he was ousted.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 19, 2025 07:21 ET (12:21 GMT)

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