Gildan generated record revenue of nearly $896 million in the second quarter of 2022 and increased net income by 8% year over year to $158.2 million, according to a company earnings report released Thursday, Aug. 4. 

The Montreal-headquartered global apparel maker, a publicly traded company whose T-shirts and other basics sell extensively in the promotional products industry, also released its annual environmental, social and governance (ESG) report, detailing progress that occurred in 2021 on goals related to sustainability and corporate social responsibility.

Glenn Chamandy, Gildan

As for the financials, Gildan said Q2 revenue was up 20% compared to the same quarter the previous year, thanks in large part to a sizeable increase in activewear sales, particularly in North America. A favorable product mix, less discounting than the year prior, and higher net selling prices contributed to the activewear gain. The topline quarterly revenue number of $895.6 million accounts for total Gildan sales across business channels, not just the promo space.

Diluted earnings per share (EPS) for the quarter totaled $0.85 and adjusted diluted EPS was $0.86, up 15% and 27%, respectively. Quarterly operating income tallied $174 million, or 19.4% of sales in the quarter, and adjusted operating income was $176 million, or 19.6% of sales.

For the first six months of the year, Gildan’s total company sales reached $1.67 billion, a year-over-year increase of 25%. Net earnings for the half-year were $304.6 million, an annual increase of 24.3%. Diluted EPS for the year’s first six months was up 31.7% to $1.62.

“Our first-half performance points to the tight control we currently have over our supply chain and cost structure, which puts us in a good position to support our customers’ demand as we move through the remainder of the year,” said Glenn Chamandy, president and CEO of Gildan.

On July 29, Gildan released its 18^th-annual ESG report. Key environmental highlights include that 39% of the firm’s energy came from renewable sources in 2021. Compared to 2018, Gildan reduced water intensity by 18% and total waste intensity by 15%. The apparel manufacturer reduced waste clippings by 68% compared to 2020.

On the social responsibility front, Gildan noted that it donated $2.1 million to community partners, put $15.1 million toward in-kind benefits for employees, and increased female representation by 2% per quarter at the senior-management level. The firm also noted that 98% of Gildan workers are represented by formal health and safety committees.

Additionally, Gildan garnered recognition for its ESG efforts. Included on the Dow Jones Sustainability Index for the ninth consecutive year, the company was also named one of the “World’s 100 Most Sustainable Corporations” by Corporate Knights. Gildan ranked sixth out of 250 brands on the 2021 Fashion Transparency Index, and was also named one of the “Top 100 ESG Companies of 2021” by The Investor’s Business Daily.

Said Chamandy: “Our vertically integrated business model continues to be the driving force behind our leading ESG practices and allows us to ensure that our products are made with respect throughout our entire supply chain.”

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