UPDATE: Gildan Activewear Shares Drop On Downbeat Q4 Results

Shares of Gildan Activewear

dipped more than 7% in pre-market trading after the company reported a weaker-than-expected profit for the fourth quarter and issued a weak guidance. The Montreal, Canada-based company posted quarterly net income of $122.7 million, or $1 per share, compared to $96.8 million, or $0.79 per share, in the year-ago period. Its adjusted net earnings rose to $1.00 per share from $0.83 per share. Its revenue climbed 6.4% to $666 million. However, analysts were expecting earnings of $1.08 per share on revenue of $713.40 million. Net sales for the Printwear segment rose 2.8% to $435.8 million, while net sales for Branded Apparel surged 13.8% to $230.2 million. Gildan Activewear now expects a net loss of around $0.30 per share on revenue of around $400 million for the 3-month period ending January 4, 2015. It also projects calendar year 2015 earnings of $3.00 to $3.15 per share on revenue of $2.65 billion. Analysts expected earnings of $$3.71 per share on revenue of $2.72 billion. The company also lifted its dividend by 20% to $0.13 per share and commenced a 6.1 million share buyback plan. Gildan Activewear ended the fiscal year with cash and cash equivalents of $65.2 million and outstanding bank indebtedness of $157.0 million. Gildan Activewear shares tumbled 7.60% to $53.84 in pre-market trading.