NewsWhore
03-26-2010, 06:00 PM
Montreal-based Gildan Activewear (GIL) claims 60% of the US wholesale market for simple low-cost cottons and blends. The company sells mostly to wholesalers who in turn sell to companies that personalize the garments. The company attributes its success to its early move to offshore manufacturing in the DR and not Asia. Labor costs in the DR are higher than in Asia, but other costs are much lower and time to market is far shorter.
"Shipping from the Caribbean is three weeks or less. From the East, it's several months," said analyst with Scotia Capital Anthony Zicha in an interview with Investors Business Daily. As manufacturers in a broad range of industries are learning, that's an advantage that often trumps low labor costs.
IBD reports that in its first quarter of its 2010 fiscal year (ended Dec. 31), Gildan continued to gain wholesale market share as it topped analyst estimates with earnings of 24 cents. That was a six-fold gain over last year's four pennies. At $220 million, sales were nearly 20% higher than the year before. Gildan overcame a weak pricing environment with strong unit sales growth. It also benefited from lower cotton costs.
www.investors.com/NewsAndAnalysis/Article.aspx?id=528153 (http://www.investors.com/NewsAndAnalysis/Article.aspx?id=528153)
More... (http://www.dr1.com/index.html#11)
"Shipping from the Caribbean is three weeks or less. From the East, it's several months," said analyst with Scotia Capital Anthony Zicha in an interview with Investors Business Daily. As manufacturers in a broad range of industries are learning, that's an advantage that often trumps low labor costs.
IBD reports that in its first quarter of its 2010 fiscal year (ended Dec. 31), Gildan continued to gain wholesale market share as it topped analyst estimates with earnings of 24 cents. That was a six-fold gain over last year's four pennies. At $220 million, sales were nearly 20% higher than the year before. Gildan overcame a weak pricing environment with strong unit sales growth. It also benefited from lower cotton costs.
www.investors.com/NewsAndAnalysis/Article.aspx?id=528153 (http://www.investors.com/NewsAndAnalysis/Article.aspx?id=528153)
More... (http://www.dr1.com/index.html#11)