The apparel giant Gildan, which has reported a 5.7 percent increase in annual revenues to more than $2.9 billion in FY18, began re-organizing its textile and sock production capacity in Q4 in an effort to increase operational efficiencies across its manufacturing base.
A Honduran factory referred to as AKH, acquired via its 2012 acquisition of Anvil, has been shuttered with all of its fashion basics performance apparel production consolidated into Gildan’s Rio Nance 6 factory that opened in Q2/18. Separately in Q4, the majority of Gildan’s sock production in Honduras was consolidated to its Rio Nance 4 facility with the Rio Nance 3 factory now focused strictly on garment dyeing operations.
Gildan executives believe the production changes will result in lower costs and increased manufacturing efficiencies and improve gross margins starting later this year in FY20. Separately, GIL anticipates higher raw material costs in 2019, particularly in H1. Meanwhile, Gildan says significant growth in ecommerce pushed annual sales to approximately $100 million in 2018.