=Gildan Activewear (GIL) reported earnings on Wed 2 Nov 2016 (a/h)

Gildan Activewear misses by $0.01, misses on revs; guides FY16 EPS below consensus, revs in-line:

• Reports Q3 (Sep) earnings of $0.50 per share, excluding non-recurring items, $0.01 worse than the Capital IQ Consensus of $0.51; revenues rose 6.0% year/year to $715 mln vs the $728.12 mln Capital IQ Consensus.
• Co issues guidance for FY16, sees EPS of $1.48-1.50 (Prior $1.50-1.55), excluding non-recurring items, vs. $1.53 Capital IQ Consensus Estimate; sees FY16 revs of approx $2.6 bln (Prior $2.65 bln) vs. $2.65 bln Capital IQ Consensus Estimate.
• Adjusted EBITDA for 2016 is now estimated to be approximately $530-$535 million compared to the Company's previous projection of approximately $545-$555 million.
• The Company continues to project Printwear sales of approximately $1.65 billion while Branded Apparel sales are now projected to be approximately $960 million compared to the Company's prior guidance of approximately $1.0 billion.
  • The updated 2016 full year guidance primarily reflects the lower than anticipated results in the third quarter and tempered Branded Apparel sales expectations in the fourth quarter, in light of current retail market conditions. In addition, projected Branded Apparel sales for the year also reflect the later than previously projected timing of shipments of a new licensed program to a large national chain retailer, previously planned to be shipped in the fourth quarter of this year and now requested for shipment in the first quarter of 2017.
• The Company expects capital expenditures for 2016 towards the lower end of its previous projected range of $150-$175 million
• . Given the Company's strong cash generation to date and its projection for the fourth quarter, the Company expects to generate record free cash flow for the full year in the range of $325-$350 million.