The publicly traded maker of everyday basic apparel dropped its Q3 and full-year revenue guidance last week, citing lower demand for imprintables in North America and ongoing softness in international imprintable markets. Gildan is now projecting a 2 percent decline in Q3 revenues to approximately $740 million, down 2 percent year-over-year, with estimated activewear sales pegged at $620 million. Distributor point-of-sale imprintable sales fell in the high-single digits and international imprintable revenues fell instead of rising as projected, for the period ended Sep. 29. The Montreal company formally reports Q3 results on Oct. 31.
Looking ahead, Gildan has slashed its Q4 sales projection by $70 million and projects further distributor inventory destocking will negatively impact total period sales by another $100 million. Gildan is currently projecting FY19 revenues to be down low-single digits from FY18.