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Gildan Plans for the Future

Monday 06th of August 2007 09:07:42 PM

Active wear company, Gildan, Inc., which supplies Black T-Shirts, fleece clothing, and other clothing to distributors, and also markets its own line of active wear and socks, plans on expanding its market range to Europe and Japan by 2008. After closing several plants in Canada, the United States, and Mexico, the company opened new plants in South America and the Caribbean. In an effort to ensure that the expansion will take place, the company recently hired a merger and acquisition specialist to create plans for the future.

Gildan currently holds 48% of the North American T-shirt market. By expanding into other markets, the company hopes to increase profits and increase the number of production plants. "The latest quarter was a bit below expectations, but in the longer term, Gildan has excellent growth prospects. It could double production capacity and earnings in the next few years, but currently its plants are working flat out," said Raymond James analyst Andy Nasr. The company hopes to be debt-free by the end of the fiscal year in 2008.

By continuing to manufacture T-Shirts for other companies and concentrating on its own line of active wear, Gildan, who has a close partnership with US store-chain Walmart, should increase its profit margins into next year. Cutting overhead costs and expanding into new markets should help the company increase its profits.

(c)Martinez Ferre, www.sxc.hu

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