Gildan Activewear, a Canadian clothing company, saw a surge in its shares following better-than-expected earnings for the recent quarter. This positive performance has led to significant gains in both the Toronto and New York Stock Exchanges.
Impressive Financial Results
In the third quarter, Gildan Activewear reported adjusted per-share earnings of 74 cents, surpassing the mean forecast of 71 cents by 11 analysts polled by FactSet. Moreover, the company’s sales for the quarter reached $869.9 million, a 2.3% increase compared to the expected $843.1 million.
Stock Gains and Outlook
After the release of these strong financial results, Gildan Activewear’s shares rose by 9.8% in Toronto, reaching C$42.50. Furthermore, on the New York Stock Exchange, the stock experienced a similar gain of 9.8% to reach $30.69. These increases have contributed to a year-to-date advance of 15% and 12%, respectively.
However, while Gildan Activewear is currently performing well, the company has adjusted its financial targets for the full year due to softening demand in certain markets. As a result, they now expect revenue and adjusted earnings per share for 2023 to be at the lower end of their initial targets. Previously, Gildan anticipated that revenue would be flat to slightly down, with earnings ranging between $2.55 and $2.65 per share.
