BALTIMORE — May 3, 2018 — Today, four years into her partnership with the athletic performance brand, Under Armour and Misty Copeland launch her revolutionary Signature Collection. Co-designed with the principal ballerina, the Misty Copeland Signature Collection embodies a stylistic story of poise and power, and is rooted in performance, which is synonymous with the Under Armour brand.

The Misty Copeland Signature Collection was created with versatility in mind without compromising performance. The apparel was built on the foundation that while Misty is an athlete, she has an effortless, elevated feminine look outside of the studio where she’s able to express herself. Through hand-drawn sketches, inspiration and conversation, Misty’s vision of achieving an elegant and feminine, yet strong line came to fruition.

“Under Armour helped my vision become a reality and I’m so excited to share this collection with women everywhere. I wanted a line where we could feel fierce in the gym, and at the same time, feel confident wearing the same look out to dinner, running errands or living our everyday lives,” said Copeland. “As someone that appreciates style and fashion as much as I do, it has been a dream come true to be so intimately involved in the design process. I wanted to showcase the versatility of my own personal style, and together with Under Armour, we are bringing a beautiful collection to life.”

The Misty Copeland Signature Collection ranges from leggings and work out tanks, to bodysuits and trench coats. From the beginning, it was Misty’s priority to highlight the strength of a woman’s body in her collection, resulting in structured pieces that highlight curves while still feeling delicate. For example, she incorporated a feminine trend like lace and put it through a performance lens to make it feel modern and fresh in a bodysuit silhouette.

“We feel strongly that women should look and feel great in their clothing, and Misty’s Signature Collection truly embodies that, complete with feminine cuts and gorgeous fabrics,” said Morgan Goerke, general manager of Women’s at Under Armour. “Under Armour celebrates the power of women, and Misty is the epitome of a powerful woman with the poise, command and grace she carries with her on and off the stage. Misty’s passion for lifting women up perfectly aligns with Under Armour’s platform and the result is this beautiful, collaborative collection.”

All of the pieces from the Misty Copeland Signature Collection have the ability to stand on their own or be paired together. Classic Under Armour cuts and technology are incorporated into each piece, making them durable, innovative and flattering. The collection uses UA Breathelux fabric, which is wicking with a silky smooth, lightweight finish, and several pieces have a perforated lace pattern for additional ventilation and subtle style. The collection pieces range from $60 – $550 and include unique items such as the Misty Copeland Signature trench coat, a leather bomber jacket, a dress with a detachable bodysuit, a matching lace crop top and legging set, and more.

Posted May 3, 2018

Source: Under Armour Inc.

TOLLAND, CONN. — May 3, 2018 — Three-dimensional design has been a buzz phrase in the fashion industry for years but hasn’t shown its impact until now. “The pace of changing consumer trends has completely disrupted the traditional fashion development cycle,” said Mary McFadden, executive director of CAD, Gerber Technology. “Converting data into speed and reducing the time associated with physical processes can now be realized with AccuMark 3D and its ability to streamline product development to decrease time to market.”

AccuMark 3D offers an end-to-end solution from creative design to technical pattern design throughout product and merchandising management. It delivers distinct value to each step from concept to consumer.

Creative Teams – Leveraging AccuMark 3D, add-on tools such as Blender, or partners such as Virtuality.Fashion, creative designers can see 3D prototypes to verify and validate design ideas with photorealistic imagery to decide which designs will proceed into technical design. They can also use highly photorealistic renderings for merchandising or marketing purposes.

Pattern Makers, Technical Designers and Production Teams – see the 3D image and the 2D patterns to ensure the garment can be made technically correct and passed through to production for a seamless workflow. With the integration of the Avametric fabric simulation engine, teams can see the most realistic representation of fabric thickness and draping on the market. AccuMark 3D also has a new library of avatars that includes extended sizes for women up to U.S. size 24 and men up to U.S. size 58.

“Just having pretty 3D images that stand alone does not support the agile supply chain we need,” said Ingrid Heijnen, manager of atelier at G-Star Raw.  “We want to reduce our physical samples. AccuMark gives us the possibility to virtually simulate our garments while ensuring these simulations can be made in real production through seamless integration of 2D patterns with the 3D simulations. We chose AccuMark because we have a shared vision of innovation on how 3D will transform processes in our industry.”

Merchandising Teams – can display garments online with their e-Commerce sites. Through Gerber’s partnership with Avametric, they can utilize virtual try on leading to measurably higher shopper conversion rates. 3D simulations can now also be represented in augmented reality via the Avametric app, which supports both a more interactive design process and also empowers end consumers to experience fashion in their personal environment.

“Enabling the entire supply chain to see a garment in 3D as it is created fuels the creative process and solves the need for multiple samples, helping companies to reduce costs and environmental impact,” continued McFadden. “AccuMark 3D is the critical element in helping each step in product development, from idea to reality, come to life digitally.”

AccuMark 3D is part of the AccuMark Platform which includes a family of products designed to help companies unleash creative vision and grow their businesses successfully in today’s on-demand world. The AccuMark Platform is the industry leading software system for intelligent pattern design, grading, marker making and production planning. It helps increase productivity and accelerate time to market.

Sign up to be part of our new Gerber Technology Online Community. Connect with our experts and other users for answers to your questions and to provide your input into our future product development.

Posted May 3, 2018

Source: Gerber Technology

MONTREAL — May 2, 2018 — Gildan Activewear Inc. today announced its results for the first quarter ended April 1, 2018, and reaffirmed its full year guidance.

The company’s first quarter performance was largely in line with its expectations and the company is on track to attain its full year financial targets. As expected and consistent with the company’s guidance initiated on February 22, 2018, adjusted EPS was down in the quarter compared to the record level achieved in the first quarter last year. The company continued to see strong sales momentum in higher growth product areas such as fashion basics, as well as strong double digit sales growth in international markets, although as anticipated, temporary product availability constraints limited the company’s ability to fully capitalize on sales demand in the quarter. During the quarter, the company also successfully launched its full assortment of Gildan® branded men’s underwear on Amazon.

Results for the quarter were also impacted, as anticipated, by higher raw material and other input costs and planned investments in the areas of e-commerce and distribution. SG&A cost reductions resulting from the company’s organizational consolidation effected at the beginning of 2018 started to flow through in the quarter. The benefit from these cost reductions is expected to have a larger impact in the second half of the year. Free cash flow in the first quarter was better than the company anticipated.

Operating results

Net sales of $647.3 million in the first quarter ended April 1, 2018, were down 2.7% compared to the prior year reflecting a 3.2% increase in activewear sales and a 20.4% decline in the hosiery and underwear category. The increase in activewear sales was mainly due to higher net selling prices, including foreign exchange and favorable product-mix driven by double digit sales growth in the fashion basics category, including American Apparel®, Comfort Colors®, and our Gildan® Softstyle ring-spun offering. International sales in the first quarter were up 24%, reflecting strong growth momentum in all markets. The decline in the hosiery and underwear sales category was mainly due to the anticipated decline in unit sales volumes of socks at mass retailers which are shifting emphasis toward their own private label brands. In addition, lower sock sales reflected the impact of the non-recurrence of the initial roll-out of a licensed program to a large national chain retailer, which occurred in the first quarter of the prior year. Underwear point of sales (POS) continued to perform strongly in the quarter. According to NPD’s Retail Tracking Service, market share for Gildan® branded men’s underwear was 12.1% for the March quarter, up 140 basis points compared to the March quarter last year, reflecting in part the impact of expanded distribution in the e-commerce channel. POS growth of Gildan® men’s underwear outpaced the overall POS growth for men’s underwear for the total measured market per NPD.

Gross margin in the first quarter of 2018 totaled 27.2%, reflecting a 120 basis point decrease over the same period last year. The decline was mainly due to the anticipated impact of higher raw material and other input costs, partly offset by higher net selling prices, including foreign exchange and the positive impact of a richer product-mix.

SG&A expenses for the first quarter of 2018 amounted to $93.1 million, or 14.4% of sales, compared to $89.2 million, or 13.4% of sales, in the first quarter of 2017. The $3.9 million increase was primarily due to planned higher selling and distribution expenses related to the enhancement of the company’s e-commerce and distribution capabilities, partly offset by cost reductions resulting from the company’s recent organizational consolidation.

For the first quarter of 2018, the company generated operating income of $76.3 million and adjusted operating income of $82.7 million, down 18.0% and 17.0%, respectively, compared to the same period last year. Adjusted operating margin for the first quarter was 12.8% compared to 15.0% in the first quarter of 2017.

Net earnings for the three months ended April 1, 2018 amounted to $67.9 million, or $0.31 per share on a diluted basis, compared with net earnings of $83.5 million, or $0.36 per share on a diluted basis for the same period last year. Excluding the impact of after-tax restructuring and acquisition-related costs of $6.7 million in the quarter and
$6.6 million in the prior year quarter, Gildan reported adjusted net earnings of $74.6 million, or $0.34 per share on a diluted basis for the first quarter of 2018, down from $90.1 million, or $0.39 per share on a diluted basis in the same quarter last year. The 12.8% decrease in adjusted diluted EPS in the quarter was mainly driven by lower gross profit and higher SG&A expenses, partly offset by lower income tax expense and the benefit of a lower share count compared to the prior year.

The company consumed $40.0 million of free cash flow in the first quarter 2018 compared to free cash flow generation of $41.3 million in the same quarter last year. The decline was primarily due to higher working capital requirements, driven primarily by higher raw material costs, and lower earnings in the quarter, partly offset by lower capital expenditures. Capital expenditures of $22.4 million in the quarter were primarily for investments in textile capacity expansion, distribution, information technology, and sewing capacity. During the first quarter of 2018, the company repurchased 3,058,666 common shares at a total cost of approximately $89 million, pursuant to its normal course issuer bid (NCIB). The Company ended the first quarter of 2018 with net debt of $723.5 million and a leverage ratio of 1.3 times net debt to trailing twelve months adjusted EBITDA.

Outlook

The company reaffirmed its full year 2018 financial guidance of adjusted diluted EPS in the range of $1.80 to $1.90 on projected net sales growth in the low to mid-single-digit range, adjusted EBITDA in the range of $595 to $620 million, and projected free cash flow of approximately $400 million for the year. The company continues to project capital expenditures of approximately $125 million for 2018.

Projected growth in adjusted diluted EPS for 2018 continues to reflect the projected impact of higher sales, anticipated cost reductions related to efficiency gains expected from the streamlining of the company’s sales and marketing infrastructure in connection with its organizational consolidation, and the benefit of a lower share count compared to the prior year. These positive factors are projected to be partly offset by higher raw material and other input costs, expenses related to e-commerce and distribution initiatives to support direct-to-consumer fulfillment capabilities, and slightly higher income tax expense. The company continues to assume an income tax rate of approximately 4% in 2018.

While the company is projecting sales growth in the second quarter of 2018, it continues to work to increase availability, particularly for certain higher-margin activewear products. Further, as previously stated, adjusted operating margin in the second quarter is expected to be down year-over-year due to anticipated higher raw material and other input costs, and planned increases in e-commerce and distribution investments, partly offset by anticipated cost reductions stemming from the company’s organizational consolidation. These cost reductions are expected to have a larger positive impact in the second half of the year and the company continues to expect SG&A as a percentage of sales in the third and fourth quarters of 2018 to improve in the range of 100 to 200 basis points on a year-over-year basis.

Declaration of quarterly dividend

The Board of Directors has declared a cash dividend of $0.112 per share, payable on June 11, 2018 to shareholders of record on May 17, 2018. This dividend is an “eligible dividend” for the purposes of the Income Tax Act (Canada) and any other applicable provincial legislation pertaining to eligible dividends.

Normal course issuer bid

On February 22, 2018, the company announced the renewal of a NCIB beginning February 27, 2018 and expiring February 26, 2019, to purchase for cancellation up to 10,960,391 common shares, representing approximately 5% of the company’s issued and outstanding common shares as of February 16, 2018.

During the three months ended April 1, 2018, the company repurchased for cancellation a total of 3,058,666 common shares under the NCIB for a total cost of $89.2 million, of which a total of 175,732 common shares were repurchased under the previous NCIB. Of the total cost of $89.2 million, $2.2 million was charged to share capital and $87.0 million was charged to retained earnings. Of the 3,058,666 common shares purchased for cancellation, the settlement of 229,778 common shares occurred post quarter-end, for which $6.7 million is recorded in accounts payable and accrued liabilities as at April 1, 2018. The company repurchased an additional 2,372,843 common shares under an automatic share purchase program during the remainder of the month of April 2018 at a total cost of $69.8 million.

Disclosure of outstanding share data

As at April 30, 2018, there were 214,013,806 common shares issued and outstanding along with 2,991,665 stock options and 102,567 dilutive restricted share units (Treasury RSUs) outstanding. Each stock option entitles the holder to purchase one common share at the end of the vesting period at a pre-determined option price. Each Treasury RSU entitles the holder to receive one common share from treasury at the end of the vesting period, without any monetary consideration being paid to the company. However, the vesting of at least 50% of each Treasury RSU grant is contingent on the achievement of performance conditions that are primarily based on the company’s average return on assets performance for the period as compared to the S&P/TSX Capped Consumer Discretionary Index, excluding income trusts, or as determined by the Board of Directors.

Posted May 3, 2018

Source: Gildan Activewear Inc.