Gildan shares tumble after Q3 results disappoint, cuts full-year guidance

Montreal - The stock price of Gildan Activewear Inc. plummeted by 25 percent following the release of disappointing third-quarter results and a revised full-year guidance. The company's shares fell to C$45.12 in early trading on the Toronto Stock Exchange. Gildan, a Montreal-based clothing manufacturer, reported a profit of US$259.4 million or US$1.40 per diluted share for Q3, compared to US$120.2 million or 80 cents per diluted share in the same period last year.

Adjusted earnings per diluted share from continuing operations rose to US$1.54, up from US$1.00 per diluted share a year ago. However, Gildan now anticipates revenue between US$5.4 billion and US$5.5 billion for the full year, a decline from the previous range of US$6 billion to US$6.2 billion. Adjusted diluted earnings per share are now projected between $3.70 and $3.80, down from the earlier range of $4.65 to $4.75.