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Gildan Activewear fiscal 3Q profit up 47 percent

The Associated Press

Gildan Activewear Inc.'s fiscal third-quarter net income jumped 47 percent, helped by lower cotton costs and higher sales volume. The clothing company also backed its full-year revenue figures and narrowed its earnings guidance.

Shares of the Canadian company jumped in trading Thursday on the report.

Gildan earned $115.8 million, or 94 cents per share, for the period that ended June 30. That is compared with $78.6 million, or 64 cents per share, earned in the third quarter last year. After adjusting for tax restructuring and acquisition costs, it earned 95 cents per share versus 66 cents per share last year.

Revenue rose to $614.3 million from $600.2 million. The company said that its revenue was hampered by limited production capacity, which reduced its ability to fully capitalize on peak demand for activewear.

Analysts polled by FactSet were anticipating earnings of 94 cents per share on revenue of $631.6 million for the period.

Gildan said that it now expects to earn between $2.67 and $2.70 per share for the year on an adjusted basis, versus its prior forecast of earnings between $2.65 and $2.70 per share. Analysts had forecast $2.70 per share.

The company said it still expects its revenue for the year will be just over $2.15 billion; analysts are anticipating $2.16 billion.

Gildan anticipates earnings between 81 and 84 cents per share for the fourth quarter; analysts were anticipating 84 cents per share. The company anticipates revenue in excess of $600 million for the period; analysts were anticipating $590.1 million.

The company, which owns brands such as Gold Toe and Anvil, announced Tuesday that it plans to buy the New Buffalo Shirt Factory Inc. for $7 million to expand its business.

Shares of the company increased $1.67, or 3.7 percent, to $46.32 in afternoon trading.