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Gildan Activewear Inc. expects sales of the American Accoutrement cast it acquired aftermost year will bifold in 2018 as it looks to aggrandize sales of the artefact globally.

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The assurance for accouterment banker American Accoutrement on Ste-Catherine artery in city Montreal on Monday, November 14, 2016. Dario Ayala / Montreal Gazette

MONTREAL — Gildan Activewear Inc. is eyeing opportunities to body a clandestine characterization business for its activewear articles as ample U.S. retailers about-face their action to account the blackmail from Amazon.

The Montreal-based maker of apparel, including T-shirts, socks and underwear says Walmart, Target and added ample retailers are affective to backpack added abode cast accoutrement with low prices.

Gildan exited the clandestine characterization socks business and has never fabricated clandestine characterization outerwear.

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Chief controlling Glenn Chamandy said accouterment clandestine characterization activewear would accompaniment its action to advertise branded articles such as American Apparel, Comfort Colors and Anvil.

“This icing on the block that will acquiesce us to basically abide to ample in and add opportunities as we accompaniment all of our added strategies as we go forward,” he said in an interview.

The ample retailers are affective added to clandestine characterization articles in a bid to allure barter who may boutique at online sites like Amazon.

“We’re still activity to accept a aggregate of affairs our brands at the aforementioned time as accouterment selectively clandestine characterization to them if we accept to do it and that aloof gives us a altered way of accomplishing our goal.”

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Chamandy wouldn’t say how abundant acquirement these deals could generate, adage the aggregation will accede anniversary befalling alone based on its accessible assembly accommodation and generated margins. No shipments are accepted in 2018.

“We accept so abundant drive in our amount business appropriate now and our point of auction is so able that we’re absolutely in a sold-out position appropriate now,” he said, abacus it is accretion absolute plants and architecture a new one in Honduras.

Walmart didn’t acknowledge to a appeal for animadversion but appear letters aftermost anniversary said it was replacing alfresco brands for women, kids and plus-size barter with abundance brands such as Terra & Sky, Time and Tru angular and Wonder Nation.

Gildan expects sales of the American Accoutrement cast it acquired aftermost year will bifold in 2018 as it looks to aggrandize sales of the artefact globally and adds added administration accessories for the brand’s e-commerce site.

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The accouterment maker says the iconic cast it acquired aftermost February should add about US$100 actor of net sales this year, up from US$50 actor in 2017.

“We anticipate that there’s a lot of aerodrome larboard in the brand. Don’t balloon back the cast was in its heyday it did over $600 actor so it’s a cast that had absolutely a big afterward afore they had banking trouble.”

Gildan bought the broke California cast for US$88 actor in a accord that afar American Accoutrement food and its e-commerce site.

It after absitively to use Gildan’s bargain all-around assembly networks to aggrandize its alms while additionally authoritative some curve of American Accoutrement in the United States.

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Gildan, which letters in U.S. dollars, says its all-embracing net accumulation decreased 26 per cent to $54.9 actor in the fourth quarter.

Excluding restructuring and acquisition-related costs, it becoming $67.6 actor or 31 cents per adulterated share. That akin analyst forecasts but was bottomward from $74.5 actor or 32 cents per allotment in the above-mentioned year.

Revenues added 11 per cent to $653.7 actor for the aeon concluded Dec. 31.

Gildan was accepted to column $634.6 actor in revenues, according to analysts polled in Thomson Reuters.

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The advance in revenues reflected a about 28 per cent access in printwear sales to $415.6 million, including US$16.6 actor from sales of American Apparel.

Net sales of Gildan-branded clothes such as underwear fell 9.2 per cent to $238.1 million.

For the abounding year, Gildan becoming $362.3 actor or $1.61 per adulterated share, compared to $346.6 actor or $1.47 per allotment in 2016.

Adjusted balance grew 8.6 per cent to $386.9 million. That equalled $1.72 per share, up from $1.51 a year ago.

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Revenues were $2.75 billion, up from $2.59 billion in 2016.

Gildan says it expects to acquire $1.80 to $1.90 in adapted adulterated balance in 2018 on low to about bristles per cent college revenues.

Follow @RossMarowits on Twitter.

Companies in this story: (TSX:GIL)

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