Gildan says proxy battle cost US$57 million in Q2
MONTREAL — Gildan Activewear Inc. says costs related to the leadership struggle at the company cost it US$57.2 million in the second quarter.
The costs helped push down earnings to US$58.4 million for the quarter from US$155.3 million for the same quarter last year.
The Montreal-based company, which reports in U.S. dollars, saw a protracted power struggle that originally saw chief executive Glenn Chamandy pushed out only to later retake the helm.
The company says the costs included US$18 million for advisory fees, US$21.6 million for severance costs and US$7.8 million for expenses related to Chamandy's firing and subsequent reinstatement.
Gildan says its adjusted net income worked out to US$124.7 million, up from US$112.3 million last year.
The company says net sales for the quarter came in at US$862.2 million, up from US$840.4 million last year.
This report by The Canadian Press was first published Aug. 1, 2024.
Companies in this story: (TSX:GIL)
Provided Content: Content provided by Canadian Press. The Globe and Mail was not involved, and material was not reviewed prior to publication.