Gildan lowers Q2 earnings guidance on production shortfall, other factors

“In addition, the company expects to be negatively impacted by higher-than-projected increases in freight and energy costs in the second half of the fiscal year.”

- Clothing maker Gildan Activewear Inc. (TSX:GIL) lowered its guidance for second-quarter earnings Tuesday, blaming a production shortfall at its Dominican Republic textile facility and other factors.

The Montreal-based company said it now expects to see net earnings of 35 cents US per share in the quarter, down from an earlier projection of 42 cents.

The forecast earnings are 13 per cent higher than its earnings in the prior-year period but down from prior guidance due to the production shortfall, an inventory writedown related to discontinued sock lines and increased costs related to the integration of a new retail information system. Read more