November 02, 2017
Solid sales in the printwear division were offset by a decline in the branded segment as Gildan reported net income of $116.1 million for the three months ended Oct. 1 this year compared to $114.4 million last year.
The senior unsecured debt is now rated at Baa3, down from Baa2 and the lowest rating considered investment grade as a result of the ongoing challenges the company faces in the North American market, its recent execution issues with the ERP implementation and the prospect that there will not be much improvement in 2018.
Net income declined 40% to ¥4,115 million ($37.1 million) from ¥6,835 million in the third quarter on 5% higher sales at ¥106,557 million ($959.7 million) up from ¥101,839 million.
Newell Brands’ Play segment sales were 2% higher at $610.6 million with team sports, outdoor recreation and fishing all increasing, while operating income was $68.5 million compared to $3.6 million including the inventory step-up from the Jarden acquisition last year.
Total sales were up 10% for the four weeks ended Oct. 28 to $61.5 million against $55.9 million, driven by a 6.6% comp store gain.
WWW finished its portfolio management initiatives, including the sale of Sebago and the Department of Defense contract business, the licensing of Stride Rite and closing under performing retail stores.
Operating profit plunged 97% to $176,000 from $5,818,000 in the third quarter on a sales decline of 18% to $205,540,000 from $250,711,000 that was blamed on bad weather, changing buying habits at certain mass merchants and an overall soft bicycle market.
Net income dipped 27% to $3,118,000 from $4,243,000 in the third quarter ended Oct. 7 on 8% higher revenues at $41,892,000 vs. $38,793,000 driven by basketball, table tennis and archery.
Its letter defends the company’s recent efforts to improve profitability and asks shareholders to back its entire slate of directors against the efforts of Marcato to replace the entire board with its own slate that intends to sell off the smaller brands, restructure the Ugg brand and initiate an aggressive stock buyback program.