Gildan Activeware profits ripped

Gildan Activewear says it suffered an 84.5 per cent shrinkage in quarterly profit to $4.3 million US as sales sagged 26.5 per cent from a year earlier to $184 million US.

The Montreal-based maker of shirts and socks said it won't be offering any projections on future results because of "increasing uncertainty about macroeconomic conditions."

Gildan blames its losses on "significantly lower unit sales volumes, combined with higher cotton and energy costs."

Looking ahead, "continuing weak end-use demand and tighter credit markets may affect the financial condition and liquidity of wholesale customers, resulting in increased credit risk," the company stated.

Gildan ended the quarter with net debt of $37 million.