During the first six months of 2019, Top 40 promotional products supplier Gildan (asi/56842) increased total sales 1% to nearly $1.43 billion, but saw its net earnings fall 30% year-on-year to $122.4 million, according to financial data released August 1^st.

The Montreal-based company noted that diluted earnings per share for the half-year tallied $0.59, down from $0.82 in the comparable period of 2018. Gildan said the earnings decline was primarily the result of a drop in operating margin and adjusted operating margin, as well as higher net financial expenses.

Glenn Chamandy, President/CEO, Gildan

Revenue growth of 1.7% in Gildan’s activewear segment, which includes business in the promo products industry, drove the overall sales rise, but was partially offset by a 2% weakening in the apparel maker’s underwear and hosiery business.

For the second quarter ended June 30^th, Gildan’s sales increased approximately 5% to $802 million. “Our growth drivers continued to perform well, including growth momentum in fashion basics, fleece, and global lifestyle brand sales,” Gildan said in a statement.

Nonetheless, Q2 net earnings were $99.7 million, or $0.49 per share on a diluted basis, compared with net earnings of $109 million, or $0.51 per share on a diluted basis, for the same period last year.

Looking ahead, Gildan predicts that it will experience sales growth in the mid-single-digit range for 2019 as a whole. The company now projects diluted EPS to be $1.80 to $1.85, up from a previous forecast of $1.75 to $1.85.

With estimated 2018 North American promotional product revenue of $650 million, Gildan ranked fifth on Counselor’s latest list of the largest suppliers in the industry.