A sports clothing giant that sells product to and through a variety of stores in New Westminster has seen its sales plummet on a massive scale.
Gildan Activewear Inc. missed expectations as it reported a large second-quarter loss after sales plunged 71 per cent amid widespread closures of customer stores because of COVID-19.
Gildan’s products are sold in Walmart in New West and smaller shops, such as Instant Imprints.
The Montreal-based company, reporting in U.S. dollars, says it lost $249.7 million or $1.26 per diluted share, compared with a profit of $99.7 million or 49 cents per share a year earlier.
The results included $224 million of charges, including $131 million that were COVID-related and $93 million for initiatives to simplify its offering and cut costs.
Excluding one-time items, the adjusted net loss was $196.6 million or 99 cents per share, down from a net income of $115 million or 56 cents per share in the prior year's quarter.
Revenues for the three months ended June 28 were $229.7 million, compared with $801.6 million in the second quarter of 2019.
Gildan was expected to report 41 cents per share in adjusted losses on $241.4 million in revenues, according to financial markets data firm Refinitiv.
"Despite the impact of the COVID-19 pandemic, we maintained a strong focus on our key priorities, including the health and safety of our employees and the long-term positioning of our business," stated CEO Glenn Chamandy.
- With files from the Canadian Press