MONTREAL — Gildan Activewear Inc. smashed through expectations as its net profit soared nearly 50 per cent in its latest quarter on record revenue due to stronger demand in North America.

The Montreal-based maker of T-shirts, underwear and socks, which reports in U.S. dollars, says it earned US$146.4 million or 77 cents per diluted share in the first quarter.

That compared with US$98.5 million or 50 cents per share a year earlier.

Excluding one-time costs, adjusted net income reached US$144.3 million or 76 cents per share, up from $95 million or 48 cents per share in the first quarter of 2021.

Revenues for the three months ended April 3 were US$774.9 million, up 31.4 per cent from US$589.6 million in the year ago period. It included US$667 million of activewear items and US$108 million of underwear.

Gildan was expected to earn 51 cents per share in adjusted profits on US$664.3 million of revenues, according to financial data firm Refinitiv.

“Record results in the first quarter and a strong start to 2022 reflect the impact of Gildan's Sustainable Growth (GSG) strategy,” stated CEO Glenn Chamandy in a news release.

The company said the 38 per cent increase in activewear sales was largely driven by volume growth and net selling price increases, as well as favourable product-mix, which partly offset lower shipments to Europe and Asia.

Still, it noted it is starting to see slowing sales for certain products in the hosiery and underwear category that could be related to broader economic factors, including the termination of government stimulus and support payments last year.

This report by The Canadian Press was first published May 4, 2022.

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