The Montreal-based company saw a protracted power struggle that originally saw chief executive Glenn Chamandy pushed out only to later retake the helm.
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 year-earlier quarter.
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.