Gildan (asi/56842) says it generated an annual record in sales in 2022, but the Montreal-headquartered firm’s revenue declined year over year in the fourth quarter.

Such are the details that emerged from Gildan’s full-year 2022 sales report, which the global manufacturer of apparel basics, whose products sell extensively in the promo products market, released on Wednesday, Feb. 22.

For the full year, total global net sales across all of Gildan’s business channels – which includes but isn’t limited to promo – tallied $3.24 billion. That was up 11% from 2021 and an annual record, the firm said.

Nonetheless, operating income declined from $652 million in 2021 to $603.4 million in 2022. Net earnings dropped 11% to $541.5 million, or $2.94 per share, which was down 4.5%. Lower gross margins and an impairment charge related to Gildan’s hosiery business were among the factors that weighed on income/earnings.

Adjusted diluted earnings per share – which are based on non-generally accepted accounting principles that can exclude certain factors like the impairment charge – were $3.11 for Gildan in 2022.

Meanwhile, in the fourth quarter, net sales declined 8.2% year over year to $720 million. Operating income fell from $177.1 million in 2021’s Q4 to $92.6 million in 2022’s fourth quarter. Quarterly net income was $83.9 million, down 52% year over year. Basic earnings per share were $0.47 – a nearly 50% decline from the prior year. Adjusted diluted earnings per share were $0.65.

The Q4 sales drop primarily resulted from lower point-of-sale retail business and less inventory replenishment by retailers. The reduced sales and impairment charge contributed to the lower operating and net incomes.

Despite the bumpy Q4 and some anticipated challenges early in 2023, Gildan is projecting that full-year 2023 sales will increase in the low single-digit percentage range.

“Despite near-term headwinds related to the economic environment, which impacted our performance in the fourth quarter and which may persist through the first part of 2023, we remain excited about the Gildan Sustainable Growth strategy, as well as our strong competitive positioning and ability to support our customers, as we work toward delivering on our long-term growth aspirations,” said Gildan CEO Glenn Chamandy.