Gildan Activewear Inc (GIL) 2011 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the fourth quarter 2011 Gildan Activewear earnings conference call. My name is Mikhail and I will be your lead operator today. At this time, all participants are in a listen-only mode. We will facilitate a question and answer session towards the end of the prepared remarks.

美好的一天，女士們、先生們，歡迎參加 Gildan Activewear 2011 年第四季度收益電話會議。我叫米哈伊爾，今天我將成為你們的首席接線員。此時，所有參與者都處於只聽模式。我們將在準備好的發言結束時安排問答環節。

As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to your host for today, Ms. Sophie Argiriou, Director of Investor Communications. Please proceed.

謹此提醒，本次通話將被錄音以供重播。我現在想把今天的電話轉給你們的主持人，女士。Sophie Argiriou，投資者傳播總監。請繼續。

Thank you, Mikhail, good morning, everyone, and thank you for joining us. Earlier this morning, we issued our press release announcing our earnings results for the fourth quarter and for the 2011 fiscal year. During the week of December 5, we will be filing our shareholder report containing management's discussion and analysis in our 2011 audited consolidated financial statements with the Canadian Securities regulatory authorities and the US Securities and Exchange Commission.

謝謝米哈伊爾，大家早上好，感謝您加入我們。今天早上早些時候，我們發布了新聞稿，宣布了第四季度和 2011 財年的盈利結果。在 12 月 5 日這一周，我們將向加拿大證券監管機構和美國證券交易委員會提交股東報告，其中包含管理層對 2011 年經審計的合併財務報表的討論和分析。

These documents will also be available on our website at www.gildan.com. I'm joined here today by Glenn Chamandy, our President and Chief Executive Officer, and Laurence Sellyn, our Executive Vice President and Chief Financial and Administrative Officer. Before Laurence takes you through the results, I would like to remind everyone that certain statements included in this conference call may constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve unknown and known risks, uncertainties, and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. We refer you to the Company's filings with the US Securities and Exchange Commission and Canadian Securities regulatory authorities that may affect the Company's future results. I would now like to turn the call over to Laurence.

這些文件也將在我們的網站 www.gildan.com 上提供。今天，我們的總裁兼首席執行官格倫·查曼迪 (Glenn Chamandy) 以及我們的執行副總裁兼首席財務和行政官勞倫斯·塞林 (Laurence Sellyn) 與我一起出席。在勞倫斯向您介紹結果之前，我想提醒大家，本次電話會議中包含的某些陳述可能構成 1995 年美國私人證券訴訟改革法案含義內的前瞻性陳述。此類前瞻性陳述涉及未知和已知的風險、不確定性和其他因素，可能導致實際結果與此類前瞻性陳述明示或暗示的未來結果存在重大差異。我們建議您參閱公司向美國證券交易委員會和加拿大證券監管機構提交的文件，這些文件可能會影響公司未來的業績。我現在想把電話轉給勞倫斯。

Good morning. Today, we reported results for Q4 and the full year, which were in line with our August guidance and initiated guidance for fiscal 2012. We are forecasting a loss of approximately $0.40 per share in the first quarter of fiscal 2012, which will be only the second quarterly loss in our history as a public company. Followed by an anticipated gradual strengthening in our results during the balance of the year, due to assumed significantly lower cotton costs for the second half of the fiscal year as well as increased manufacturing efficiency. Due to the loss in the first quarter, EPS is currently expected to be approximately $1.30 in fiscal 2012.

早上好。今天，我們報告了第四季度和全年的業績，該業績與我們 8 月份的指導方針一致，並啟動了 2012 財年指導方針。我們預計 2012 財年第一季度每股虧損約為 0.40 美元，這將是我們作為上市公司歷史上第二個季度虧損。由於假設本財年下半年棉花成本大幅下降以及生產效率提高，預計我們的業績將在今年餘下時間逐步走強。由於第一季度虧損，目前預計2012財年每股收益約為1.30美元。

Adjusted net earnings for the fourth quarter were $0.42 per share compared to $0.48 per share in the fourth quarter of last year. And, our guidance provided in August of approximately $0.40 per share. Adjusted EPS for the full fiscal year was $2.01, up 20% from fiscal 2010. The decline in EPS in the fourth quarter compared to the fourth quarter of last year was primarily due to the significant increase in the cost of cotton, which was not fully recovered in higher net selling prices, lower unit sales volumes for activewear, and a non-recurrence of insurance proceeds, and a cotton subsidy received in the fourth quarter of last year. We maintained our market share in the US distributor channel at 62.3%, essentially the same as last year.

第四季度調整後淨利潤為每股 0.42 美元，而去年第四季度為每股 0.48 美元。而且，我們 8 月份提供的指導價約為每股 0.40 美元。整個財年調整後每股收益為 2.01 美元，比 2010 財年增長 20%。第四季度每股收益較去年第四季度下降的主要原因是棉花成本大幅上升，但淨售價上升、運動服單位銷量下降以及非服裝銷售量下降等因素並未完全恢復棉花成本。 - 保險收益的重複發生，以及去年第四季度收到的棉花補貼。我們在美國分銷渠道的市場份額維持在62.3%，與去年基本持平。

The lower unit sales volumes for activewear were due to a 6.3% reduction in shipments from US distributors to US screen printers and inventory destocking. These negative factors were partially offset by the impact of income tax recoveries in the fourth quarter of fiscal 2011, growth in international screen print shipments, more favorable activewear product mix, and the earnings accretion from the acquisition of Gold Toe Moretz. Compared to the assumptions in our August guidance, the unfavorable impact of weaker screen print demand and increased promotional discounting in the wholesale distributor channel at the end of the quarter, and lower than forecast soft manufacturing efficiency, was more than offset by the later than anticipated timing of destocking of manufacturing inventory by wholesale distributors, which is not occurring in the first quarter of fiscal 2012 and the benefit of income tax recovery. Weak demand and increasing competitive pricing pressure in the screen print market have continued into the first quarter of fiscal 2012. Shipments from US distributors to US screen printers declined by 6.2% in October.

運動服單位銷量下降的原因是美國分銷商向美國絲網印刷商的發貨量減少了 6.3% 以及庫存去化。這些負面因素被 2011 財年第四季度所得稅收回、國際絲網印刷出貨量增長、更有利的運動服產品組合以及收購 Gold Toe Moretz 帶來的盈利增長所部分抵消。與我們 8 月份指引中的假設相比，季度末絲網印刷需求疲軟、批發分銷商渠道促銷折扣增加以及低於預期的軟製造效率帶來的不利影響，被晚於預期的結果所抵消。批發分銷商削減製造庫存的時機（2012 財年第一季度沒有發生這種情況）以及所得稅回收的好處。絲網印刷市場的需求疲軟和日益激烈的定價壓力一直持續到 2012 財年第一季度。10 月份美國分銷商向美國絲網印刷商的發貨量下降了 6.2%。

Distributors have been anticipating a reduction in gross selling prices and have been uncertain whether the benefits of any such price decrease will be applied to previously purchased inventory. Consequently, we have not replenished inventories, which have been reduced in the first quarter in order to supply screen printer demand. The significant destocking of distributor inventories in the first quarter, has resulted in excess inventories building up at the manufacturer level and to further discounting in order to try to maintain capacity utilization at capital intensive producing mills. This promotional discounting is taking place at the same time that all manufacturers are now consuming inventories produced with high cost cotton. Although Gildan is no longer constrained by lack of capacity and is maintaining a high market share, the combination of weak end use demand and distributor destocking is projected to result in an approximate 40% decline in Gildan unit sales volumes in the screen print market in the first quarter compared to the first quarter of fiscal 2011.

經銷商一直預計總售價會下降，並且不確定此類降價帶來的好處是否會適用於之前購買的庫存。因此，我們沒有補充庫存，第一季度為了滿足絲網印刷機的需求而減少了庫存。第一季度經銷商庫存的大幅去化導致製造商庫存積壓，並進一步打折，以維持資本密集型生產工廠的產能利用率。此次促銷折扣發生的同時，所有製造商都在消耗高成本棉花生產的庫存。儘管 Gildan 不再受到產能不足的限制並保持較高的市場份額，但終端使用需求疲軟和經銷商去庫存預計將導致 Gildan 在絲網印刷市場的單位銷量下降約 40%第一季度與2011 財年第一季度相比。

As the market leader, Gildan has taken the following actions. One, in order to enable distributors to better plan their business and stimulate end use demand for Gildan products, we announced yesterday that we are lowing gross selling prices in the US distributor channel and that we will apply the benefits of the selling price reduction to existing distributor inventories at the effective date of the price decrease. This special distributor devaluation is expected to impact EPS in the first quarter by approximately $0.16 per share. Two, in order to manage our inventory levels, we have decided to extend the normal Christmas shutdown at our manufacturing facility. And three, we are continuing to ramp up Rio Nancy Five, which will be our largest and most cost efficient facility. And, are currently planning to temporarily reduce capacity at the Rio Nancy One facility in order to maintain production capacity in line with sales demand and potentially modernize older equipment and infrastructure.

作為市場領導者，Gildan 採取了以下行動。一、為了讓經銷商更好地規劃業務並刺激Gildan產品的最終使用需求，我們昨天宣布降低美國經銷商渠道的毛銷售價格，並將把銷售價格降低的好處應用到現有的產品上。降價生效日的經銷商庫存。此次特別經銷商貶值預計將影響第一季度每股收益約 0.16 美元。第二，為了管理我們的庫存水平，我們決定延長製造工廠的正常聖誕節停工時間。第三，我們正在繼續擴建里約南錫五號設施，這將是我們最大、最具成本效益的設施。並且，目前正計劃暫時減少里約南錫一號工廠的產能，以保持產能符合銷售需求，並可能對舊設備和基礎設施進行現代化改造。

The results for the screen print business in the first quarter reflect a perfect storm of negative factors, which can be summarized as follows. One, the first quarter is the lowest seasonal unit volume quarter of the year for the screen print business. Two, low seasonal and end use demand is being compounded by significant destocking by wholesale distributors. Three, increased promotional activity is resulting in declining net selling prices at the same time that producers are consuming inventories produced with cotton purchased at or close to the recent historical peak. Four, selling price promotions in the quarter will be abnormally high as a percentage of reported sales in the first quarter, as discounts are largely earned by distributors based on shipments to screen printers, which are not being replenished in the first quarter. Five, the special distributor inventory devaluation is projected to negatively impact EPS in the quarter by $0.16 per share. And six, SG&A expenses, which are largely fixed and incurred evenly throughout the year, will also be abnormally high as a percentage of reported sales in the first fiscal quarter, due to the weak industry demand and distributor destocking.

一季度絲網印刷業務的業績反映了負面因素的完美風暴，可以概括如下。首先，第一季度是絲網印刷業務全年季節性單位銷量最低的季度。第二，批發分銷商大幅減少庫存，加劇了季節性和最終用途需求的低迷。第三，促銷活動的增加導致淨售價下降，同時生產商正在消耗用等於或接近近期歷史峰值購買的棉花生產的庫存。第四，本季度的銷售價格促銷佔第一季度報告銷售額的比例將異常高，因為折扣主要是由分銷商根據絲網印刷機的發貨獲得的，而絲網印刷機在第一季度沒有補充。第五，特殊經銷商庫存貶值預計將對本季度每股收益產生 0.16 美元的負面影響。第六，由於行業需求疲軟和經銷商去庫存，SG&A 費用基本上是固定的，全年均勻發生，佔第一財季報告銷售額的比例也將異常高。

Results for the screen print business are expected to gradually improve in subsequent quarters of the fiscal year. The Company expects to benefit from a significant reduction in its cotton costs in the second half of the year compared to both the first half of fiscal 2012 and the second half of fiscal 2011. Assuming that the Company covers the balance its remaining customer requirements for consumption during fiscal 2012 at close to recent future prices. The consumption of high cost cotton is not expected to continue into early in the third fiscal quarter as a result of the weak demand environment and resulting slower inventory turnover. In addition, we expect to benefit from increased efficiencies in our soft manufacturing operations.

絲網印刷業務的業績預計將在本財年後續幾個季度逐步改善。與 2012 財年上半年和 2011 財年下半年相比，公司預計下半年棉花成本將大幅下降。假設公司以接近近期未來的價格滿足 2012 財年剩餘客戶消費需求。由於需求環境疲軟以及庫存周轉速度放緩，預計高成本棉花的消費不會持續到第三財季初。此外，我們預計將從軟製造業務效率的提高中受益。

The projected reduction in full year EPS in fiscal 2012 compared to 2011 is primarily due to higher cotton costs in the first half of the year, lower selling prices for activewear, the special distributor devaluation discounts, and the non-recurrence of income tax recoveries during fiscal 2011. These negative factors are assumed to be partially offset by assumed lower cotton costs in the second half of the year, projected higher net selling prices for socks and underwear, projected higher activewear sales volumes, more favorable manufacturing efficiency, after taking account shutdown costs assumed in fiscal 2012, and the EPS accretion from a full year of earnings from the acquisition of Gold Toe Moretz. The Company is taking a conservative view towards recovery and market demand during fiscal 2012. We are assuming the industry shipments from US distributors to US screen printers will decline by 5% from last year in the second quarter. And, be essentially unchanged in the second half of fiscal 2012 compared to the low base in the second half of fiscal 2011.

與 2011 財年相比，預計 2012 財年全年每股收益將有所下降，主要是由於上半年棉花成本上升、運動服售價下降、特約經銷商貶值折扣以及上半年不再追回所得稅。 2011 財年。這些負面因素預計將被下半年棉花成本下降、襪子和內衣淨售價上漲、運動服銷量增加、生產效率提高（考慮到 2017 年假設的停工成本）所部分抵消。 2012 財年，以及收購Gold Toe Moretz 帶來的全年收益帶來的EPS 增長。公司對 2012 財年的複蘇和市場需求持保守態度。我們假設第二季度美國分銷商向美國絲網印刷商的行業出貨量將比去年下降 5%。並且，與 2011 財年下半年的低基數相比，2012 財年下半年基本沒有變化。

We are also assuming an average market share of approximately 65% in the US distributor channel. Every $1 million doesn't change in screen print sales volume impacts EPS by over $0.05 per share. Despite the weak economic environment, we are projecting further penetration in international and other markets in fiscal 2012 due to lack of capacity constraints, which have limited our penetration in these markets and the introduction of new products. We believe that the projected results for the screen print business in the first half of fiscal 2012 are the results of short-term factors. The actions which we have taken are reinforcing our market leadership and we expect the screen print business to continue to be highly profitable and a significant free cash flow generator for the Company over the long-term.

我們還假設美國分銷渠道的平均市場份額約為 65%。絲網印刷銷量每 100 萬美元不變，每股收益就會影響超過 0.05 美元。儘管經濟環境疲軟，但由於缺乏產能限制，我們預計 2012 財年將進一步滲透到國際和其他市場，這限制了我們在這些市場的滲透和新產品的推出。我們認為，2012財年上半年絲網印刷業務的預期業績是短期因素的結果。我們採取的行動正在鞏固我們的市場領導地位，我們預計絲網印刷業務將繼續保持高利潤，並長期為公司帶來重要的自由現金流。

Sales of socks in the fourth quarter grew by 84% due to the acquisition of Gold Toe Moretz partially offset by lower inventory replenishment by retailers. Although the Gold Toe acquisition was accretive to earnings in the fourth quarter of fiscal 2011, Gildan's overall sock business continued to be unprofitable due to the high cost of cotton being consumed in inventories and manufacturing efficiencies, which were incurred as we transitioned product from the US to Honduras, and ramped up the Rio Nancy 4 sock facility. Our retail business is now structured as a separate operating division, with divisional headquarters at Charleston and will be treated as a separate operating segment for financial reporting starting in the first quarter of fiscal 2012. We are projecting that the retail segment will begin to report operating profit during the course of fiscal 2012 as a result of achieving our efficiency goals in our vertical sock manufacturing operations, and benefiting from the decline in cotton prices. Selling price increases for retail products, which were implemented in the fourth quarter of fiscal 2011 and the first quarter of fiscal 2012 were aligned with cotton futures. Consequently, selling price increases will not pass through the cost of seed cotton flowing through cost of sales in the first half of fiscal 2012, but we do not expect to reduce retail selling prices when we are consuming lower cost cotton in the second half of the fiscal year.

由於收購 Gold Toe Moretz，第四季度襪子銷量增長了 84%，但零售商庫存補貨的減少部分抵消了這一增長。儘管收購 Gold Toe 增加了 2011 財年第四季度的收益，但由於庫存消耗的棉花成本高昂以及我們從美國轉移產品而導致生產效率下降，Gildan 的整體襪子業務仍然無利可圖。到洪都拉斯，並擴建了Rio Nancy 4 襪子工廠。我們的零售業務現在被構建為一個獨立的運營部門，部門總部位於查爾斯頓，並且從 2012 財年第一季度開始，將被視為一個獨立的運營部門進行財務報告。我們預計零售部門將在 2012 財年開始報告營業利潤，因為我們實現了垂直襪子製造業務的效率目標，並受益於棉花價格的下跌。2011財年第四季度和2012財年第一季度實施的零售產品銷售價格上漲與棉花期貨價格一致。因此，銷售價格的上漲不會通過 2012 財年上半年的籽棉成本轉入銷售成本，但我們預計，當我們在下半年消費成本較低的棉花時，零售價格不會降低。財政年度。

We are implementing our detailed plan for the integration of Gold Toe Moretz which is expected to result in manufacturing cost savings, eliminate duplicate overhead expenses, and result in further organic sales growth through utilizing Gildan's low cost vertical manufacturing to make Gold Toe brands cost competitive across all retail channels. We are pursuing new retail programs for Gold Toe's owned and licensed brands, as well as the development of the Gildan brand for retail. And, foregoing opportunities for private label programs, which do not meet our profit criteria. Further unit volume growth will result in further SG&A leverage, as well as increased utilization of manufacturing capacity and increased manufacturing efficiency.

我們正在實施Gold Toe Moretz 整合的詳細計劃，預計將節省製造成本，消除重複的管理費用，並通過利用Gildan 的低成本垂直製造，使Gold Toe 品牌在各個領域具有成本競爭力，從而進一步實現有機銷售增長。所有零售渠道。我們正在為 Gold Toe 的自有品牌和授權品牌推行新的零售計劃，以及零售業 Gildan 品牌的開發。並且，放棄不符合我們利潤標準的自有品牌計劃的機會。單位產量的進一步增長將帶來進一步的銷售、管理和行政費用槓桿，以及製造能力利用率的提高和製造效率的提高。

We continue to be confident in the success of our retail strategy and our ability to leverage our competitive strength and existing business model in the retail market. We have built a good reputation with our major retail customers for consistent high product quality and has established Gildan as an important strategic supply chain partner for major retailers. In fiscal 2011, we generated EBITDA of $312.5 million and free cash flow before the acquisition of Gold Toe Moretz and dividend payments of approximately $7.3 million. Capital expenditures for the year amounted to approximately $165 million. We continue to have a strong balance sheet and significant unutilized debt financing capacity. We ended the financial year with net indebtedness of approximately $120 million.

我們仍然對零售戰略的成功以及利用我們在零售市場的競爭優勢和現有業務模式的能力充滿信心。我們以始終如一的高產品質量在主要零售客戶中建立了良好的聲譽，並使 Gildan 成為主要零售商的重要戰略供應鏈合作夥伴。2011 財年，我們在收購 Gold Toe Moretz 之前產生了 3.125 億美元的 EBITDA 和自由現金流，以及約 730 萬美元的股息支付。本年度的資本支出約為1.65億美元。我們仍然擁有強勁的資產負債表和大量未利用的債務融資能力。本財年結束時，我們的淨負債約為 1.2 億美元。

We expect to generate free cash flow of $75 million to $100 million in fiscal 2012, although we expect to use cash in the first half of the fiscal year. Capital expenditures in fiscal 2012 are projected to be approximately $100 million. Today, we also announced our regular quarterly dividend of $0.075 per share, which is the same level that we have maintained since we initiated the dividend after the first quarter of fiscal 2011. In conclusion, in spite of the projected loss in the first quarter of fiscal 2012, and the short-term challenges resulting from the extreme volatility in cotton costs and weak economic conditions, we expect our business to stabilize in the second half of fiscal 2012, when selling prices and cotton costs are projected to be back in alignment. We believe that our screen print business will continue to provide us with attractive long-term profit return and free cash flow generation. And, that we will be successful in our strategy to leverage our screen print brands and the business model and competitive advantages which have made us successful in the screen print business into retail and the other new markets which we are targeting.

儘管我們預計在本財年上半年使用現金，但我們預計 2012 財年將產生 7500 萬至 1 億美元的自由現金流。2012 財年的資本支出預計約為 1 億美元。今天，我們還宣布了每股 0.075 美元的定期季度股息，這與我們自 2011 財年第一季度後開始派息以來一直保持的水平相同。總之，儘管預計 2012 財年第一季度將出現虧損，而且棉花成本劇烈波動和疲軟的​​經濟狀況帶來短期挑戰，但我們預計我們的業務將在 2012 財年下半年趨於穩定，當銷售價格和棉花成本預計恢復一致時。我們相信，我們的絲網印刷業務將繼續為我們提供有吸引力的長期利潤回報和自由現金流生成。而且，我們將成功實施我們的戰略，利用我們的絲網印刷品牌、商業模式和競爭優勢，使我們在絲網印刷業務領域取得成功，進入零售和我們瞄準的其他新市場。

Thank you, Laurence. This concludes our formal remarks. Before moving to the Q&A, as always, I would ask that everyone limit the number of your questions to two in order to give everyone the opportunity to ask a question. We'll go back for a second round if time permits. Thank you, operator, we're now ready to start the Q&A session.

謝謝你，勞倫斯。我們的正式發言到此結束。在進入問答環節之前，一如既往，我會要求每個人將問題數量限制為兩個，以便每個人都有機會提問。如果時間允許的話我們會回去進行第二輪。謝謝接線員，我們現在準備開始問答環節。

(Operator Instructions)

（操作員說明）

Jessy Hayem, TD Securities.

傑西·海耶姆，道明證券。

Thank you, good morning. How much manufacturing downtime are you planning? And can you help me reconcile -- I guess you mentioned that you're going to be shutting down some capacity in Rio Nance 1. So why you're in Nance 1?

謝謝你，早上好。您計劃停工多少時間？你能幫我協調一下嗎——我猜你提到過你將關閉 Rio Nance 1 號的部分產能。那你為什麼在 Nance 1 呢？

And when you're still also going ahead with the ramp up of Rio Nance 5, granted you say it's going to be done in relation to market demand. So any more color on that would be helpful, along with maybe quantifying what that manufacturing downtime, how it affected your EPS in fiscal '12, or how it's expected to affect your EPS.

當您仍在繼續進行 Rio Nance 5 的增產時，假設您說這將根據市場需求來完成。因此，任何更多的顏色都會有所幫助，同時可能會量化製造停機時間，它如何影響您在 12 財年的每股收益，或者預計它將如何影響您的每股收益。

Okay, well, I'll start with the downtime and Laurence will give the EPS number. What we're going to do in terms of our shutdown, we're going to take roughly about 12 days extra based on the normal shutdown and holidays and Christmas time. And as far as the Rio Nance 1 versus Rio Nance 5, well first of all, just maybe take us back a little bit, is that Rio Nance 5 only started production at the end of September.

好吧，我將從停機時間開始，勞倫斯將給出 EPS 數字。就停工而言，我們將根據正常停工、節假日和聖誕節時間額外大約需要 12 天左右的時間。至於 Rio Nance 1 與 Rio Nance 5，首先，也許讓我們回想一下，Rio Nance 5 是在 9 月底才開始生產的。

Objectively, the factory's going to be ramped up during the course of 2012. We're going to continue to run Rio Nance 1 at a full capacity through Q1 and Q2 for sure. And then, we're going to, as we get to a point where Rio Nance 5 is going to start excelling and increasing its capacity, we will -- our plans are today is to reduce our capacity somewhat in Rio Nance 1.

客觀地說，工廠將在 2012 年加速產能建設。我們肯定會在第一季度和第二季度繼續滿負荷運行 Rio Nance 1。然後，當我們到達 Rio Nance 5 號將開始表現優異並增加其容量時，我們今天的計劃是在一定程度上減少 Rio Nance 1 號的容量。

That's based on our current outlook. Now, if the outlook changes, obviously we'll deal with the capacity and we'll provide enough capacity to service the market based on the market demand. And that's something that is a little bit unknown at this point. And as far as the costs, the costs of not running Rio Nance 1 at its full capacity are embedded in, obviously, our guidance.

這是基於我們當前的前景。現在，如果前景發生變化，顯然我們將處理產能，我們將根據市場需求提供足夠的產能來服務市場。目前尚不清楚這一點。就成本而言，Rio Nance 1 號不滿負荷運行的成本顯然已包含在我們的指導中。

And as well as, even if we decide to take Rio Nance 1 down slightly or down at whatever level it is going to be at, Rio Nance 1 has been operating for almost 10 years. It's our oldest facility and we're going to take this time to reenergize some of the infrastructure, as well as look at potentially upgrading some of the equipment within the facility.

而且，即使我們決定將 Rio Nance 1 號稍微降低或降低到任何水平，Rio Nance 1 號已經運行了近 10 年。這是我們最古老的設施，我們將利用這段時間重新啟動一些基礎設施，並考慮升級設施內的一些設備。

Okay, and then--?

好吧，然後——？

And maybe one last point also is that when Rio Nance 5 is fully ramped up, just the economics on Rio Nance 5 relative to the cost structure, and Rio Nance 1 just set the stage in terms of cost competitiveness in our industry. It's still a very cost effective plant.

也許最後一點是，當 Rio Nance 5 全面啟動時，Rio Nance 5 相對於成本結構的經濟性，以及 Rio Nance 1 剛剛為我們行業的成本競爭力奠定了基礎。它仍然是一個非常具有成本效益的工廠。

But just to give you an idea of the scale of Rio Nance 5, with 10 years of technology and know how that's been put into that plant, that the cost of that factory alone in terms of the economics of building it, there's a payback just looking at the difference in cost structure between it running at full capacity and Rio Nance 1 running at full capacity. Rio Nance 5 is going to be by far initiative in terms of cost reduction as well for the Company as we go forward.

但只是為了讓您了解 Rio Nance 5 的規模，擁有 10 年的技術，並了解如何將其投入該工廠，僅就建設該工廠的經濟性而言，該工廠的成本，就有回報看看滿負荷運行和Rio Nance 1 滿負荷運行之間成本結構的差異。隨著我們的前進，Rio Nance 5 項目將成為公司降低成本方面的舉措。

Okay, so, if I understand correctly, the impact is the 12 days of the extra shutdown and the fact you'll be reshuffling essentially some capacity from Rio Nance 1 to Rio Nance 5 once it's fully up and running. Given the difference in the cost structure that should pretty much more than offset the shutdown or the lower capacity of Rio Nance 1, is that right?

好吧，如果我理解正確的話，影響就是額外關閉 12 天，而且一旦完全啟動並運行，您將基本上將一些容量從 Rio Nance 1 重新調整到 Rio Nance 5。考慮到成本結構的差異應該遠遠大於抵消 Rio Nance 1 號核電站的停產或運力降低的影響，對嗎？

Yes, that's correct.

對，那是正確的。

Okay. As far as the impact of the 12 extra days shutdown that are planned, how much of that impacts your fiscal '12 guidance?

好的。至於計劃額外關閉 12 天的影響，這對您的 12 財年指導有多大影響？

The impact of the shutdowns that we've planned during the year on EPS is about $0.15.

我們今年計劃的停產對 EPS 的影響約為 0.15 美元。

1-5?

1-5？

1-5, yes.

1-5，是的。

Okay.

好的。

Of which about half is in Q1.

其中大約一半是在第一季度。

Okay.

好的。

The other half if that occurs, certainly, to end the year. And, after that $0.15 impact, we're still projecting to generate positive, including that, we're still generating, we're still projecting to generate positive manufacturing efficiencies during the year.

如果發生這種情況的話，另一半當然是到年底。而且，在 0.15 美元的影響之後，我們仍然預計會產生積極的影響，包括我們仍在產生，我們仍然預計在今年內會產生積極的製造效率。

Okay, and how much does the guidance bake in as far as contribution from Gold Toe? You had originally mentioned a $0.20 contribution in 2012. Does that still hold?

好的，金趾的貢獻有多少？您最初在 2012 年提到了 0.20 美元的捐款。這仍然成立嗎？

That still holds.

這仍然成立。

Okay, and then, maybe if I can have a final one, just help me understand I guess, you're exiting the private label business. How are the retailers aligned with -- the retailers where you do have private label right now, lined up with you or supporting you, I guess, going through the Gildan brand or promoting the Gildan brand going forward? And I guess, question on that, is that in any way related to the inefficiencies in the soft manufacturing or anything of the sort?

好吧，然後，也許如果我能有最後一個，請幫助我理解我猜，你正在退出自有品牌業務。零售商如何與你現在擁有自有品牌的零售商保持一致，與你保持一致或支持你，我想，通過 Gildan 品牌或推廣 Gildan 品牌前進？我想，問題是，這是否與軟製造或類似的低效率有關？

What we're exiting is the nonprofitable programs that don't meet the criteria of Gildan, which are large volume, basic, and within the skill set that can be produced in our facilities, and that's really what we're exiting.

我們正在退出的是不符合吉爾丹標準的非營利項目，這些項目數量大、基礎性強，並且在我們的設施可以生產的技能範圍內，而這正是我們正在退出的項目。

I thought that was pretty much done, though.

不過，我認為這已經基本完成了。

Well, it's -- no, there has been some more programs within the existing customers. There are still some programs that just don't meet our profit criteria as well. It's a combination of the product itself, as well as the profit criteria. Now, the Company's goal is to drive its own brand strategy. I mean, at the end of the day, that's what our objective is.

嗯，不，現有客戶中還有更多計劃。還有一些項目也不符合我們的利潤標準。這是產品本身以及利潤標準的結合。現在，公司的目標是推動自主品牌戰略。我的意思是，歸根結底，這就是我們的目標。

We acquired last year Gold Toe. And Gold Toe Moretz is a marketing Company. They have no assets, no manufacturing assets, purely a marketing Company. They have an experienced management team in marketing. They have best in class merchandising expertise.

我們去年收購了 Gold Toe。Gold Toe Moretz 是一家營銷公司。他們沒有資產，沒有製造資產，純粹是一個營銷公司。他們擁有一支經驗豐富的營銷管理團隊。他們擁有一流的營銷專業知識。

They have a proven track record in driving brands and licensed products, and they have a huge technical support team that's given them a lot of innovation. What we're doing is we're using and levering this expertise from Gold Toe to help not just drive the Gold Toe brand and lever it into other products, such as underwear and activewear products and levering their brands, but as well as to help drive our Gildan-owned brand strategy.

他們在推動品牌和授權產品方面擁有良好的記錄，並且擁有龐大的技術支持團隊，為他們提供了大量創新。我們正在做的是，我們正在利用和利用 Gold Toe 的專業知識，不僅幫助推動 Gold Toe 品牌並將其運用到其他產品中，例如內衣和運動服產品並利用其品牌，而且還幫助推動我們Gildan 擁有的品牌戰略。

That's really going to be the focus for us as we continue to drive our strategy. We will not -- we have selective good private label programs, that are somewhat brands, like Starter and Danskin and things that we're providing to drive -- and those private label programs are like brands.

當我們繼續推動我們的戰略時，這確實將成為我們關注的焦點。我們不會——我們有選擇性的良好自有品牌計劃，這些項目在某種程度上是品牌，比如 Starter 和 Danskin 以及我們提供驅動的東西——而這些自有品牌計劃就像品牌。

We're like the brand manager for those types of brands. So we're going to continue to develop those and those will be part of our portfolio. And really that will probably be the major focus of our private label initiative. And then, outside of those major opportunities with the major mass marketer in the United States, we're going to focus on driving our brand strategy.

我們就像這些類型品牌的品牌經理。因此，我們將繼續開發這些產品，並將成為我們產品組合的一部分。事實上，這可能是我們自有品牌計劃的主要焦點。然後，除了與美國主要大眾營銷商的重大機會之外，我們將專注於推動我們的品牌戰略。

One more point is maybe if you look at pre the acquisition of Gold Toe, a large portion of our sales were really at the real mass level. And now with Gold Toe, we're in department stores, we're in specialty stores, we're in clubs. So we have a really diversified retail opportunity and retail relationships.

還有一點是，如果你看看收購 Gold Toe 之前的情況，我們的很大一部分銷售實際上是在真正的大眾水平上。現在，有了 Gold Toe，我們進入了百貨商店、專賣店和俱樂部。因此，我們擁有真正多元化的零售機會和零售關係。

And objective now is to lever that and to lever the Gold Toe brands in product, as well as the Gildan brand. One of the things we're going to be doing this year in Gildan, is we are going to start spending a little bit more money in advertising our brand. We're going to be the title sponsor for the New Mexico Bowl. We just signed a three-year deal with ESPN. I don't know if anybody has seen our commercial on TV.

現在的目標是利用這一點，利用產品中的 Gold Toe 品牌以及 Gildan 品牌。今年我們在吉爾丹要做的事情之一就是我們將開始花更多的錢來宣傳我們的品牌。我們將成為新墨西哥碗賽的冠名贊助商。我們剛剛與 ESPN 簽訂了一份為期三年的合同。不知道有沒有人在電視上看過我們的廣告。

We just had an event at Madison Square Gardens where we had some exposure there. As we go forward, we're going to continue to drive our brand strategy. And we think this is ultimately the best way to create shareholder value and to build our brand like we did in the wholesale markets for the last 15 years.

我們剛剛在麥迪遜廣場花園舉辦了一場活動，在那裡我們有一些接觸。隨著我們的前進，我們將繼續推動我們的品牌戰略。我們認為這最終是創造股東價值和打造我們品牌的最佳方式，就像過去 15 年我們在批發市場所做的那樣。

Okay. So just to be clear, are you continuing with the Starter and Danskin brands? Those are not--?

好的。需要澄清的是，你們會繼續使用 Starter 和 Danskin 品牌嗎？那些不是——？

Are continuing, yes. We consider Starter and Danskin as brands, and we're the brand manager. So when we go to a customer like Walmart, we're actually developing the product, the packaging. I mean, we're really the support engine behind them.

正在繼續，是的。我們將 Starter 和 Danskin 視為品牌，並且我們是品牌經理。因此，當我們去找沃爾瑪這樣的客戶時，我們實際上是在開發產品、包裝。我的意思是，我們確實是他們背後的支持引擎。

So we look at that as one of the brands in our portfolio that we're helping to support them. What we're getting out of it is no name, or where their volumes are small and we really want to focus on our brand strategy with other certain stores outside of them.

因此，我們將其視為我們正在幫助支持他們的產品組合中的品牌之一。我們從中得到的是沒有名字，或者他們的銷量很小，我們真的想專注於我們的品牌戰略，與他們之外的其他某些商店一起。

Okay. Thank you very much.

好的。非常感謝。

Nicole Shevins, Goldman Sachs.

妮可·謝文斯，高盛。

Hi, good morning, everyone. Wanted to talk a little bit about your guidance for the year. It's below the Street, but it seems like a lot of the downside, or most of the downside, is coming through in the first quarter. So just wanted to see how comfortable you are with the pace of recovery coming through in the second quarter and beyond. And at what point do you think that the promotions could stop?

嗨，大家早上好。想談談您今年的指導。它低於華爾街，但似乎很多下行因素或大部分下行因素都在第一季度顯現。所以只是想看看您對第二季度及以後的複蘇速度有多滿意。您認為促銷活動什麼時候可以停止？

Well, we think that the recovery -- we're planning for obviously the same type of economic sell-throughs, let's say, for example, and not a big recovery in the industry. But objectively, what's happened now is what we've done is by resetting our prices and by making a more aggressive stance, we think that we're -- one, is we think we're going to create demand and stimulate opportunity.

嗯，我們認為複蘇——我們正在計劃明顯相同類型的經濟銷售，例如，而不是行業的大幅復甦。但客觀地說，現在發生的事情是我們所做的，通過重新調整價格並採取更積極的立場，我們認為我們將創造需求並刺激機會。

That could be an outcome from this. We're not for sure. We haven't factored that into our guidance. But the reality is that we're taking an approach that we're going to be a little more aggressive on pricing. We're pricing our products based on what potentially the future cost structure will be.

這可能是一個結果。我們不確定。我們尚未將其納入我們的指導中。但現實情況是，我們正在採取一種在定價上更加激進的方法。我們根據未來潛在的成本結構對產品進行定價。

Let's say, for example, in Q2 and Q3. We're just prepricing those products now and flushing through the high cost of inventory through our cost of goods sold. And in light of that, we think that based on those, this pricing strategy, we hopefully will achieve the guidance we set forth, but as well as create and stimulate new demand in the channel.

例如，在 Q2 和 Q3 中。我們現在只是對這些產品進行定價，並通過銷售成本來沖銷高昂的庫存成本。有鑑於此，我們認為基於這些定價策略，我們希望能夠實現我們提出的指導，同時創造和刺激渠道中的新需求。

And on the demand side, Nicole, as we said in our remarks and in the press release, we're assuming no growth in the distributor channels for the overall industry demand in the second half of the year. Over what were very low comps in the second half of fiscal 2011, which was down 7% from the second half of the year before. So we're being conservative in our outlook on the market recovery. And also, as far as restocking within the channel, we haven't assumed restocking to the same levels as the end of the previous year.

在需求方面，妮可，正如我們在講話和新聞稿中所說，我們假設下半年整個行業需求的分銷渠道不會增長。2011 財年下半年的公司業績非常低，比上年下半年下降了 7%。因此，我們對市場復甦的前景持保守態度。此外，就渠道內的補貨而言，我們並未假設補貨量會達到去年年底的水平。

And then can you give us a little more insight into the magnitude of the price reductions that you're taking in screen print?

那麼您能否讓我們更深入地了解一下您在絲網印刷方面所採取的降價幅度？

Well, the price reduction on -- is basically, right now what we announced, is on our core basic T-shirts. We have roughly three shirts that we sell which represents the lion's share of our T-shirts. And, the price range is anywhere between $3.00 to $4.00 per dozen, which would represent about 13% deduction on those core categories.

嗯，基本上，現在我們宣布的降價是針對我們的核心基本款 T 卹。我們銷售大約三件 T 卹，占我們 T 恤的最大份額。而且，價格範圍為每打 3.00 美元到 4.00 美元之間，這意味著這些核心類別的折扣約為 13%。

Okay, and then, just one last question. Can you give us a little more clarity on where you bought cotton by quarter for the year, since the model is so tied to it?

好的，然後，還有最後一個問題。由於該模型與棉花密切相關，您能否更清楚地介紹一下您當年按季度購買棉花的地點？

Sorry, I didn't hear the question.

抱歉，我沒有聽到問題。

Just where you bought cotton by quarter for the year, how we should think about that in our model?

就你一年中按季度購買棉花的地方而言，我們應該如何在我們的模型中考慮這一點？

I don't think we want to give any more specific guidance than what we said directionally in the press release. Cotton, in the first half of the year, is obviously substantially higher than the first half of last year. And in the second half, we're assuming that cotton is well below the first half and also well below the second half of last year.

我認為我們不想提供比新聞稿中定向所說的更具體的指導。棉花，上半年明顯較去年上半年大幅上漲。在下半年，我們假設棉花價格遠低於上半年，也遠低於去年下半年。

The first half is in line with the direction we gave on our last call. And the only thing that is different from what we said before is that some of the high cost cotton will dribble into the early part of the third quarter of this year due to slower inventory numbers.

上半場與我們上次通話中給出的方向一致。與我們之前所說的唯一不同的是，由於庫存數量放緩，部分高成本棉花將流入今年第三季度初期。

Okay. Thanks a lot, guys.

好的。非常感謝，伙計們。

Martin Landry, GMP Securities.

馬丁·蘭德里 (Martin Landry)，GMP 證券公司。

Good morning. Could you provide us with your assumptions for your fiscal '12 guidance on your international volumes? What kind of growth are you expecting there?

早上好。您能否向我們提供您對 12 財年國際銷量指引的假設？您期望那裡有什麼樣的增長？

I don't think we want to give specific number on it, Martin, but we are looking at strong growth in our international sales continuing the trend over the last couple of years, where we've been achieving strong growth. And the limitation on our international penetration, the lack of capacity and now with the new capacity coming on stream, we're positioned in having plants continuing to drive our benefits in that market. And also we've been adding new products for the international market.

馬丁，我認為我們不想給出具體數字，但我們預計國際銷售額將強勁增長，延續過去幾年的趨勢，我們一直在實現強勁增長。由於我們國際滲透率的限制、產能的缺乏以及現在隨著新產能的投產，我們的定位是讓工廠繼續推動我們在該市場的利益。我們還一直在為國際市場添加新產品。

And a large percentage of our -- we're still increasing unit volume in screen print this year, and a large -- the weighting of the percentage of international and other businesses is growing and offsetting somewhat the decline in destocking from the US distributor channel. So we're very bullish with our opportunities in these markets.

今年我們仍在增加絲網印刷的單位數量，而且國際和其他業務的比重很大一部分正在增長，並在一定程度上抵消了美國分銷商渠道去庫存的下降。因此，我們非常看好這些市場的機會。

Okay, and you're shifting a little bit of your strategy to relying on your own Gildan brand. Should we expect any increase in marketing spent to support that brand in 2012?

好的，您將稍微改變一下策略，轉而依賴您自己的 Gildan 品牌。我們是否應該期望 2012 年支持該品牌的營銷支出有所增加？

Well, our objective all along was to build our Gildan brand, which we've been, obviously, doing from the start. We're definitely going to spend more money this year on developing the brand as we go forward. I would say that we're still going to be responsible in terms of how much we're going to be spending on advertising.

嗯，我們一直的目標是打造 Gildan 品牌，顯然，我們從一開始就一直在這樣做。隨著我們的前進，今年我們肯定會花更多的錢來發展這個品牌。我想說的是，我們仍然會對廣告支出負責。

We spent some significant amount of dollars in 2011 and we're going to continue to increase our spending as we get distribution and lever the opportunity basically. We're definitely going to spend a little bit more money on advertising for sure.

我們在 2011 年花費了大量資金，隨著我們獲得分配並基本上利用機會，我們將繼續增加支出。我們肯定會在廣告上花更多的錢。

Although having said that, overall, we'll be looking to leverage our SG&A infrastructure that we have in place for the retail business. SG&A, as a percentage of sales in retail, is higher than the overall SG&A for sales. So we do have an infrastructure in place that as we go forward we will be looking to reduce SG&A as a percentage of sales both through the integration plan and through additional volumes.

儘管如此，總的來說，我們將尋求利用我們為零售業務建立的銷售、管理和行政基礎設施。SG&A 佔零售銷售額的百分比高於銷售的總體 SG&A。因此，我們確實擁有適當的基礎設施，隨著我們的前進，我們將尋求通過整合計劃和增加銷量來降低銷售及管理費用佔銷售額的百分比。

Okay, and then can you just touch quickly on why -- what are the reasons why it's been challenging to generate any acceptable profit levels supplying private label programs?

好的，那麼您能否快速談談為什麼——供應自有品牌項目難以產生可接受的利潤水平的原因是什麼？

Two things. One is that last year, retail in general first of all, we didn't raise our prices in line with the higher cost cotton and the costs going through our cost of goods sold. Secondly, last year, we had a lot of issues with the ramp-up and integration of our US production into our new state of the art facility in Honduras. And had some inefficiencies there. That was really more of a last year thing.

兩件事情。一是去年，首先是零售業，我們沒有根據棉花成本較高以及銷售商品成本的成本來提高價格。其次，去年，我們在將美國生產擴大並整合到洪都拉斯最先進的新工廠方面遇到了很多問題。並且存在一些效率低下的情況。這實際上更多是去年的事情。

In general, when you look at private label, the differences between private label and your own brand is that you're not in control of the product. And at the end of the day, there's more changes to the product. They happen more quickly. It creates inefficiencies in your manufacturing facilities. So when you are driving your brand strategy, you sell what you make.

一般來說，當您查看自有品牌時，自有品牌和您自己的品牌之間的區別在於您無法控制產品。最終，產品會發生更多變化。它們發生得更快。它會導致您的製造設施效率低下。因此，當您推動品牌戰略時，您就是在銷售自己生產的產品。

And, when you're running private label, you make what the customer wants and it changes frequently. It's much more difficult to create the type of thing that's made Gildan successful. Our wholesale business and our low cost model has been built on driving our brand strategy.

而且，當您經營自有品牌時，您會生產客戶想要的產品，並且產品會經常變化。創造出讓吉爾丹取得成功的東西要困難得多。我們的批發業務和低成本模式建立在推動我們的品牌戰略的基礎上。

And in wholesale, we sell our brand, we market it, and it's what's driven our low cost manufacturing. So we want to replicate that same opportunity in retail. We are doing that in most of our activewear products today. And our objective is to consolidate that as well in our sock facility.

在批發方面，我們銷售我們的品牌，我們營銷它，這就是推動我們低成本製造的動力。因此，我們希望在零售業複製同樣的機會。如今，我們在大多數運動服產品中都採用了這一做法。我們的目標是將這一點整合到我們的襪子工廠中。

The other thing as well is that we have been impacted in retail by the high cost of realty, so we implemented selling price increases at the end of the fiscal year. So what will also enhance our retail profitability is the impact of the selling pricing increases and selling prices and costs coming into good alignment. Due to the selling price increases and cotton coming down.

另一件事是，我們的零售業受到了高昂的房地產成本的影響，因此我們在本財年末實施了銷售價格上漲。因此，銷售價格上漲以及銷售價格和成本良好一致的影響也將提高我們的零售盈利能力。由於銷售價格上漲和棉花下跌。

Okay. Thank you very much.

好的。非常感謝。

Thank you.

謝謝。

Vishal Shreedhar, National Bank Financial.

Vishal Shreedhar，國家銀行金融部門。

Thank you. Just on your branded strategy in the retail segment going forward, Gildan has many brands now. You have the Gildan brand, you have all the Gold Toe brands, SilverToe, Auro, All Pro, et cetera, et cetera. Is there a particular brand that you're focusing on, or are you going to focus on all of them? Also, talk about the licensed brands as well, Under Armour.

謝謝。就您未來零售領域的品牌戰略而言，吉爾丹現在擁有許多品牌。你有 Gildan 品牌，你有所有 Gold Toe 品牌、SilverToe、Auro、All Pro 等等。您是否關注某個特定品牌，或者您打算關注所有品牌？另外，還要談談授權品牌 Under Armour。

Sure. The brands, the great thing about what attracted us to Gold Toe is that with the brand portfolio they have, we can now sell our brands in every channel of distribution. So, Gold Toe is selling in the department stores. We have brands for the specialty stores. We have the Under Armour, New Balance obviously for the sports type stores.

當然。對於品牌而言，Gold Toe 吸引我們的一大好處是，憑藉他們擁有的品牌組合，我們現在可以在每個分銷渠道中銷售我們的品牌。所以，金趾在百貨公司裡很暢銷。我們有專賣店的品牌。我們有 Under Armour、New Balance 顯然是運動型商店。

Gildan is going to be for the mass market. We have Auro, which is a brand that's in Target. We have GT, which is a brand that's in Walmart. So, we have a full range of brands basically which allows us to maximize our distribution in every channel.

Gildan 將面向大眾市場。我們有 Auro，這是 Target 旗下的一個品牌。我們有 GT，這是沃爾瑪的一個品牌。因此，我們基本上擁有全系列的品牌，這使我們能夠最大限度地擴大在每個渠道的分銷。

And with these brands and levering our product expertise and the products and the low cost manufacturing, it's going to create opportunities in every one of the segments. So, we have Gold Toe underwear already placed today that's coming from our low cost manufacturing. We're looking to expand, and we have all the products and everything expanded for all of our lines already.

憑藉這些品牌，並利用我們的產品專業知識、產品和低成本製造，它將在每個細分市場創造機會。因此，我們今天已經放置了來自我們低成本製造的金腳趾內衣。我們正在尋求擴張，我們已經為我們所有的產品線擴展了所有產品和一切。

And now our sales group is out working with retailers to see if we can get placement in some of these brands. We feel very comfortable. We have the relationships. We have the expertise from the management of Gold Toe, and we're going to lever that and drive our strategy.

現在我們的銷售團隊正在與零售商合作，看看我們是否可以在其中一些品牌中獲得定位。我們感覺很舒服。我們有關係。我們擁有 Gold Toe 管理層的專業知識，我們將利用這些專業知識來推動我們的戰略。

You talk about deemphasizing the private label programs which don't meet the profit criteria. Can you give us a sense of percentage in units of what percentage of your business right now doesn't meet profit criteria?

您談到不再強調不符合利潤標準的自有品牌計劃。您能否告訴我們您的業務目前不符合利潤標準的比例是多少？

Well, right now, we have still some programs that don't meet, but it's -- obviously for the last two years, we've been divesting ourselves of these programs. We still have some, but the majority of the programs which don't meet our criteria I think have been disregarded already. But there could be another $20 million, $30 million, $40 million worth of business that over time either we're going to need to increase pricing, change product categories, to get it to the level, or just disregard that business.

嗯，現在，我們仍然有一些項目不符合要求，但顯然在過去兩年裡，我們一直在放棄這些項目。我們仍然有一些，但我認為大多數不符合我們標準的項目已經被忽視了。但可能還有另外一些價值 2000 萬美元、3000 萬美元、4000 萬美元的業務，隨著時間的推移，我們要么需要提高定價，改變產品類別，以達到一定水平，要么乾脆忽略該業務。

And there's probably also more passing up on new opportunities to drive top line with that kind of unprofitable business and focus more on new sales growth opportunities, that are based on the brands.

而且可能還有更多人放棄了通過此類無利可圖的業務來推動收入的新機會，而更多地關注基於品牌的新銷售增長機會。

But the business we have with the major mass market retailers that we consider brands like Danskin and Starter are profitable. And we think that they're a big opportunity for us to continue to lever.

但我們與主要大眾市場零售商的業務，我們認為 Danskin 和 Starter 等品牌是有利可圖的。我們認為它們是我們繼續利用的巨大機會。

One of your large customers in their conference call talked about their expectations -- this was a few weeks ago, their expectations of prices going down in the wholesale segment. Do you have feedback from your wholesale customers now on where they think pricing is in the wholesale segment? Do they feel it's where it should be, or is there still concern in that segment?

您的一位大客戶在電話會議中談到了他們的期望 - 這是幾週前的事情，他們對批發領域價格下降的期望。您現在是否收到批發客戶的反饋，了解他們認為批發市場的定價水平？他們是否覺得這就是它應該在的地方，或者該細分市場仍然存在擔憂？

Where the price should be is higher than it is today, because everybody in our industry is supporting and selling cotton that they bought last year and it's high cost cotton. So the reality is that the pricing in the marketplace is a function of poor industry demand. The distributors themselves are looking at the future price of garments potentially coming down so they're destocking their shelves.

價格應該比現在高，因為我們行業的每個人都在支持和銷售他們去年購買的棉花，而且是高成本棉花。因此，現實情況是，市場定價是行業需求不佳的函數。分銷商本身也在考慮未來服裝價格可能下降，因此他們正在清理貨架上的庫存。

Our in-stock levels at our distributors, which we track what percent of our SKUs are in stock, in September, we were at 98%. Now, we're in the low 90%s, because there's actually holes in our customer's inventories because they are waiting to place orders because they weren't sure if we were going to cover the cost of marking down the inventory. So -- and this is going through even the end users.

我們在經銷商處的庫存水平（我們追踪 SKU 的庫存百分比）在 9 月份為 98%。現在，我們處於 90% 的低水平，因為我們客戶的庫存實際上存在漏洞，因為他們正在等待下訂單，因為他們不確定我們是否會承擔減少庫存的成本。所以——甚至最終用戶也經歷過這種情況。

Screen printers themselves, they basically bought a lot of inventory potentially on the way up and now they are saying, hey, is cotton coming down? I'm going to wait, I'm not going to buy anything more than I need. The whole channel is basically being destocked all the way. And I think we've seen that even in retail as well somewhat.

絲網印刷商本身，他們基本上在上漲過程中購買了大量庫存，現在他們說，嘿，棉花會下跌嗎？我會等待，我不會購買超出我需要的任何東西。整個渠道基本上是在一路去庫存。我認為即使在零售業我們也已經看到了這一點。

But overall, we think the pricing that we've got now is relative to where we think the future pricing will be. We're just going to absorb over the next two quarters the high cost of cotton going through our cost of goods sold. And then our business should be more normalized.

但總的來說，我們認為現在的定價與我們認為未來的定價有關。我們將在接下來的兩個季度通過我們的銷售成本來吸收棉花的高成本。然後我們的業務應該更加規範化。

And hopefully, from this whole exercise, what we've seen in the past is that bring pricing and bring stability to the market has created demand. And the last time we lowered prices during bad economic times, the market really recovered and picked up. And it brought some stability to the market and hopefully we'll get that same effect.

希望從整個過程中我們過去看到的是，定價和市場穩定創造了需求。上次我們在經濟不景氣時降低價格，市場確實復甦並回升。它給市場帶來了一定的穩定性，希望我們能得到同樣的效果。

Great. And one more question. Laurence, just on the financial health of your screen printers, I know that was an issue quite a few years ago. How do you feel about the financial health of your screen printers?

偉大的。還有一個問題。勞倫斯，就你們絲網印刷機的財務狀況而言，我知道這是幾年前的一個問題。您對絲網印刷商的財務狀況有何看法？

We feel very confident with the financial position of all of our large screen print customers and partners. And if you look at our bad debt experience over the years, it's been absolutely negligible.

我們對所有大絲網印刷客戶和合作夥伴的財務狀況非常有信心。如果你看看我們多年來的壞賬經歷，你會發現它絕對可以忽略不計。

Thanks, a lot.

多謝。

Kenric Tyghe, Raymond James.

肯里克·泰格，雷蒙德·詹姆斯。

Thank you. Good morning. Just with respect to the volumes in the quarter. Your unit volume decline at 7.6% versus the industry at 6.3%.

謝謝。早上好。僅就本季度的銷量而言。您的銷量下降了 7.6%，而行業下降了 6.3%。

Is that purely a function of the Broder's weight in your mix and greater than expected destocking at Broder relative to the other players or other distributors where perhaps your market share did see a modest increase? Or is there something else in that dynamic that perhaps you could help me reconcile?

這純粹是由於布羅德在您的產品組合中所佔的比重以及相對於其他參與者或其他分銷商（您的市場份額確實出現了適度增長）而言，布羅德的去庫存量超出了預期嗎？或者在這種動態中還有其他什麼東西你可以幫助我協調嗎？

Seasonal destocking across the distributor channel. Destocking was less than we anticipated in the fourth quarter, but the difference -- we've maintained our market share, so the difference between the decline in the end use market and the decline in our sales was destocking.

整個分銷渠道的季節性去庫存。第四季度的去庫存量低於我們的預期，但不同之處在於我們保持了市場份額，因此終端使用市場的下降和我們的銷售下降之間的差異是去庫存。

And just on that, with respect to Broder, would you be willing to give any color as to what percent of mix on the back of the destocking Broder represents currently or at least a range around where that has now moved to or from?

就這一點而言，關於布羅德，您是否願意給出任何顏色，以說明布羅德目前所代表的去庫存背面的混合比例是多少，或者至少是現在已經移至或移出的範圍？

Well, we -- no, we don't want -- the answer to that question is no. And at the end of the day, the whole channel has been destocked. And when the industry report comes out for us and you'll be able to validate and see what type of inventories are in the channel. But the inventory has been destocked pretty consistently.

嗯，我們——不，我們不想——這個問題的答案是否定的。而到最後，整個渠道已經去庫存了。當我們發布行業報告時，您將能夠驗證並查看渠道中的庫存類型。但庫存一直在持續減少。

I'll leave it there. Thanks very much.

我會把它留在那裡。非常感謝。

There's no change in our relationship with Broder which is still our largest customer.

我們與 Broder 的關係沒有變化，它仍然是我們最大的客戶。

Thank you. Has there been an increase or change though in the share from the number two and three players in the market? Are you seeing and moving more product through the number two and three players in the market, particularly perhaps even the third largest in the market?

謝謝。市場第二、第三名的參與者的份額是否有所增加或變化？您是否正在通過市場上第二和第三大的參與者（尤其是市場上的第三大參與者）看到並轉移更多產品？

Our share was pretty consistent amongst all of our customers. If you look at the share we have, which is roughly about 65%, I think if you looked at how we feel the share and overall how it's distributed, it's distributed based on the size of the customers themselves. So, obviously Broder Brothers is the largest distributor in the industry.

我們的份額在所有客戶中都非常一致。如果你看看我們所擁有的份額，大約為 65%，我想，如果你看看我們對份額的感受以及總體的分配方式，你會發現它是根據客戶本身的規模來分配的。因此，顯然 Broder Brothers 是該行業最大的經銷商。

But our share varies a little bit, but generally we have a pretty good balanced share -- our share being, what, 65%, let's say for example, is pretty consistent amongst the customers, just the size of the customers varies from customer to customer. And we have very good relationships with all of our customers.

但我們的份額略有不同，但總的來說，我們有一個相當平衡的份額——我們的份額，例如 65%，在客戶中是相當一致的，只是客戶的規模因客戶而異。顧客。我們與所有客戶都擁有非常良好的關係。

And that's why Gildan is a leader in our industry, because we always take the initiative to be more proactive in the market. Even though our customers all had great years last year, they basically had probably one of the best years in the industry as pricing was going up. A lot of our customers were -- made a lot of money successfully on their inventory by buying low and selling high.

這就是為什麼 Gildan 是我們行業的領導者，因為我們總是主動出擊，在市場上更加主動。儘管我們的客戶去年都度過了美好的一年，但隨著價格的上漲，他們基本上可能是行業中最好的一年之一。我們的很多客戶通過低買高賣成功地在庫存上賺了很多錢。

But Gildan is committed to the channel, and committed to our customers. And the fact is that by lowering our prices and covering the customer's devaluation, it's just reconfirming our commitment to our customers, as well as the channel and our leadership position.

但 Gildan 致力於渠道，致力於我們的客戶。而事實是，通過降低我們的價格並彌補客戶的貶值，只是再次確認了我們對客戶的承諾，以及渠道和我們的領導地位。

Thanks so much. I'll leave it there.

非常感謝。我會把它留在那裡。

Ken Stumphauzer, Sterne Agee.

肯·斯圖姆豪澤，斯特恩·阿吉。

Good morning. Thank you for taking my questions. I just had a couple of quick ones. You guys already talked about it, but I wanted to follow back up. The retail business, you're saying unprofitable this year. Is that purely attributable to gross margins, or is it a component of an infrastructure, which is larger than the sales base right now?

早上好。感謝您回答我的問題。我剛剛吃了幾個快速的。你們已經討論過了，但我想跟進一下。你說零售業務今年沒有盈利。這純粹歸因於毛利率，還是它是比目前銷售基礎更大的基礎設施的組成部分？

Well, we have put the infrastructure in place to support the growth of the business. And as we said we would plan to leverage that infrastructure as we grow the business and develop the brands.

嗯，我們已經建立了基礎設施來支持業務的增長。正如我們所說，我們計劃在發展業務和發展品牌時利用該基礎設施。

Okay. So, said differently, for that business to attain parity margins with the wholesale business, how large would the retail business have to be in sales volumes?

好的。因此，換句話來說，為了使該業務獲得與批發業務同等的利潤率，零售業務的銷量必須有多大？

The retail business in sales volumes, which we guided to roughly about $600 million, at that level, we should be able to get margins acceptable equal to our wholesale business. The reality is that what happened this year is that in retail, it's much more difficult to raise prices.

零售業務的銷售額，我們預計約為 6 億美元，在這個水平上，我們應該能夠獲得與批發業務相同的可接受的利潤率。現實情況是，今年零售業的情況是，提價變得更加困難。

We had -- and plus, the fact is the difference between us and some of the other people in the market is that we turn our inventory much quicker. And that, again, has affected us somewhat in fiscal 2011. So as we received all this high cost cotton, it actually started flowing through our cost of goods sold as we turned our inventory in three months, which is relatively quick compared to the industry standards.

我們有——而且，事實是我們和市場上其他一些人之間的區別在於我們的庫存周轉速度要快得多。這再次對我們 2011 財年產生了一定影響。因此，當我們收到所有這些高成本棉花時，它實際上開始流入我們的銷售成本，因為我們在三個月內周轉庫存，這與行業標準相比相對較快。

So the high cost of cotton was a major factor in margin pressure in retail, as well as the fact that we had a lot of inefficiencies from the startup of our Rio Nance 4 facility and moving all of the production from the balance of our US high cost manufacturing into Rio 3. Now, some of that is still on our balance sheet in terms of negative cotton costs and manufacturing efficiencies in retail. And as that flows through into fiscal 2012, we'll see towards the -- as we gradually see retail margins improve during the year and profitability.

因此，棉花的高成本是零售利潤率壓力的一個主要因素，而且我們的 Rio Nance 4 工廠啟動後效率低下，並將所有生產從我們的美國高產量平衡中轉移出來。里約三號的製造成本。現在，就棉花負成本和零售製造效率而言，其中一些仍然存在於我們的資產負債表上。隨著這種情況進入 2012 財年，我們將看到零售利潤率和盈利能力在這一年中逐漸改善。

And then, I just had one last question regarding the activewear wholesale channel and what you guys guided to for unit declines in 1Q. The number is pretty surprising to me, given that you've essentially rescinded 75% of the pricing you've taken over the course of the year. And you implied that inventory levels at the distributors is not aberrantly high.

然後，我有最後一個問題，關於運動服批發渠道以及你們對第一季度銷量下降的指導。這個數字讓我感到非常驚訝，因為你們基本上取消了這一年中 75% 的定價。您暗示經銷商的庫存水平並沒有異常高。

What is causing that magnitude of unit decline? Is it that people are expecting further price declines? Or is it alternatively that there's just too much uncertainty for them to commit to any level of inventory? What is the delta there between industry, unit demand, and actual what you're guiding to for sell-in?

是什麼導致了單位數量如此大幅度的下降？人們是否期待價格進一步下跌？或者是因為存在太多的不確定性，他們無法承諾任何庫存水平？行業、單位需求和您指導的實際銷售目標之間的差異是多少？

As we look at it, what's happening is that the promotional pricing in the market, so what's happened is that as we exited 2011, we've had extensive, more extensive discounting of products. People can see in the industry, that the price has already gone to market. So, during the month of November, we've been discounting our products through incentives to the end user at relatively similar prices to what we've now adjusted our everyday low price.

正如我們所看到的，正在發生的事情是市場上的促銷定價，所以發生的事情是，當我們退出 2011 年時，我們對產品進行了廣泛、更廣泛的折扣。業內人士可以看到，價格已經走向市場。因此，在 11 月份，我們一直通過激勵最終用戶的方式對我們的產品進行折扣，價格與我們現在調整的每日低價相對相似。

So the market's already conditioned for these lower prices. So -- and based on that fact, the distributors themselves are saying, look, if the price is going to come down, do I want to buy T-shirts and know that the price is coming down, and I'm not sure if I'm going to be covered on devaluation of my inventory. So they are taking exposure.

因此，市場已經適應了這些較低的價格。因此，基於這一事實，分銷商自己會說，看，如果價格要下降，我是否想購買 T 卹並知道價格會下降，但我不確定是否我將因庫存貶值而受到保護。所以他們正在曝光。

If you look at the distributors, if there's, let's say for example, 7 million to 8 million dozens in the channel, or 10 million dozens in the channel and the price has come down by $4.00, that's a $40 million exposure for the distributors on their physical inventory. What's happened is that they are worried and they are bringing down their inventories and we basically have taken that equation out.

如果你看一下分銷商，假設渠道中有 700 萬到 800 萬打，或者渠道中有 1000 萬打，而價格下降了 4.00 美元，那麼分銷商的曝光額為 4000 萬美元。他們的實物庫存。發生的事情是他們很擔心，他們正在減少庫存，我們基本上已經把這個等式去掉了。

There's been destocking. But at the same time, as we've brought these new prices to market, our POS has not been that bad. In the month of October, although the market was down 6% or so, we still feel pretty comfortable with our sell-through to the end user and our market share within the channel.

已經開始去庫存了。但與此同時，隨著我們將這些新價格推向市場，我們的 POS 並沒有那麼糟糕。10月份，雖然市場下跌了6%左右，但我們對最終用戶的銷售量以及渠道內的市場份額仍然感到滿意。

So our objective right now is to take the uncertainty out of the market. Not just for the distributor, but also for the end user, set a floor for pricing at this point in time. And hopefully, we'll see some activity and also to stimulate the new business because people can now go and sell products at a lesser cost than they had last year.

因此，我們現在的目標是消除市場的不確定性。不僅對於分銷商，而且對於最終用戶，此時都要設定定價下限。希望我們會看到一些活動並刺激新業務，因為人們現在可以以比去年更低的成本銷售產品。

Thanks, guys.

多謝你們。

Mark Petrie, CIBC World Markets.

馬克·皮特里 (Mark Petrie)，CIBC 全球市場部。

Good morning. Just following up on that last question, can you just talk a bit about the timing of the destocking? And I would imagine over the last few weeks, and what gives you confidence that this sort of pricing level will be able to address that?

早上好。接續最後一個問題，您能談談去庫存的時間嗎？我想在過去的幾周里，是什麼讓您相信這種定價水平能夠解決這個問題？

Well, the destocking has happened -- it really started significantly in, towards the first week, second week of October and has followed through. A lot of destocking is actually behind us now. Distributors inventories are at levels that they are probably not able to service, somewhat, even at the levels they're at now there's holes in the distributor's inventory. So the destocking piece is, I think, behind us right now.

嗯，去庫存已經發生了——它確實在 10 月的第一周、第二週就開始了，並且一直持續下去。現在，大量去庫存實際上已經過去了。分銷商的庫存處於他們可能無法提供服務的水平，即使在他們現在的水平上，分銷商的庫存也存在漏洞。所以我認為去庫存的事情現在已經過去了。

And as we now have clarity in the market, I think that the inventories will at least be aligned with what the sales should be and how much inventory we should carry on a go-forward basis. As far as the pricing is concerned, we don't have a crystal ball. I can tell you that even the pricing based on what we set today is not representative of what the cost is in most of the manufacturers, because everybody in the industry has high cost cotton.

由於我們現在市場已經清晰，我認為庫存至少將與銷售量以及我們未來應該持有的庫存量保持一致。就定價而言，我們沒有水晶球。我可以告訴你，即使我們今天制定的定價也不能代表大多數製造商的成本，因為業內每個人都有高成本的棉花。

There's no way to avoid it. And so, at the end of the day, the question is how much money are people willing to lose. Gildan is the global low cost producer. We set the bar typically on pricing and cost structure. And for us to not be making a return in this environment is just going to be equal to or worse than most of the people in the industry.

沒有辦法避免它。因此，歸根結底，問題是人們願意損失多少錢。Gildan 是全球低成本生產商。我們通常在定價和成本結構上設定標準。對於我們來說，在這種環境下無法獲得回報只會與業內大多數人持平甚至更差。

You've got to take that as a benchmark. But what we've guided to, and we put some sensitivity, is that if there is additional pricing decrease, obviously it would be negative, but we also plan for some lower prices gradually during the year. We have, in our guidance, put some thought into potentially gradual, some slight decreases in prices as the year goes on, but anything significant would be negative to earnings for sure.

你必須以此為基準。但我們的指導意見是，並且我們提出了一些敏感性，如果價格進一步下降，顯然這將是負面的，但我們也計劃在年內逐步降低價格。在我們的指導中，我們考慮了隨著時間的推移，價格可能會逐漸、略有下降，但任何重大的事情肯定會對盈利產生負面影響。

Okay, thanks. That's helpful. And just in terms of the CapEx, can you just give a bit of a breakdown on that guidance and how much, if any, of that spending's going towards Rio Nance 6?

好的謝謝。這很有幫助。就資本支出而言，您能否對該指導進行一些細分，以及該支出中有多少（如果有的話）用於 Rio Nance 6？

That money's all going torwards the completion of Rio Nance 5, is the lion's share of that. It's also going against the balance of our biomass project for steam which is -- we have a lot of cost initiatives that we set forth this year and our biomass, which is going to be a huge cost initiative for Gildan is going to be starting in January, in our second quarter and will be fully ramped up.

這筆資金全部用於完成 Rio Nance 5 號項目，這是其中的最大份額。這也違背了我們的蒸汽生物質項目的平衡，即我們今年提出了很多成本計劃，而我們的生物質，這對 Gildan 來說將是一項巨大的成本計劃，將於 2019 年開始實施。一月份，我們的第二季度將全面啟動。

So as we even get to Q4, we're going to see some of the impact from a lot of the cost initiatives. Despite the fact that we're closing our factories and losing about $0.15 of EPS, we're still going to generate a significant amount of manufacturing variances above and beyond the $0.15. We also are looking at other projects.

因此，當我們進入第四季度時，我們將看到許多成本計劃的一些影響。儘管我們將關閉工廠並損失約 0.15 美元的每股收益，但我們仍然會產生大量超出 0.15 美元的製造差異。我們也在考慮其他項目。

We're in the process of investing in an electrical plant to continue having sustainable costs of power as we go forward. So, we have money in there for the beginning stages of our electrical facility that will give us sustainable electrical costs and continue to lower costs. The one thing about the costs in Central America, cotton is a big mover, but there's been also other input costs during the last 12 months.

我們正在投資一家發電廠，以便在我們前進的過程中繼續保持可持續的電力成本。因此，我們有資金用於電力設施的初始階段，這將為我們帶來可持續的電力成本並繼續降低成本。關於中美洲成本的一件事是，棉花是一個很大的推動因素，但過去 12 個月也存在其他投入成本。

There's been labor costs, as well as electricity has gone up significantly in Central America. And that's something we're trying to get a handle on by developing our own power plant. But it was a significant part of our cost structure. We're also looking to expand some distribution capacity in Eden, I'm sorry, in Charleston to put some systems in to support the Gold Toe integration.

中美洲的勞動力成本和電力成本大幅上漲。這就是我們試圖通過開發自己的發電廠來解決的問題。但這是我們成本結構的重要組成部分。抱歉，我們還希望擴大查爾斯頓伊甸園的一些分銷能力，以安裝一些系統來支持金腳趾集成。

And there's other various projects. But overall, we're going to continue to reinvest in spending and developing our low cost model. That's what's made Gildan successful. We feel comfortable with all of our expansion plans.

還有其他各種項目。但總體而言，我們將繼續對支出進行再投資並開發我們的低成本模式。這就是吉爾丹成功的原因。我們對所有的擴張計劃都感到滿意。

And we feel comfortable with all our cost initiatives that will help us not just continue to drive market share in our wholesale market, as well as develop all of our retail initiatives and drive the top line growth of the Company. So we're in a very good position, we think. And we're only going to continue to widen the gap as we go forward.

我們對所有成本計劃感到滿意，這些計劃不僅將幫助我們繼續提高批發市場的市場份額，還將幫助我們發展所有零售計劃並推動公司的營收增長。所以我們認為我們處於非常有利的位置。隨著我們的前進，我們只會繼續擴大差​​距。

Okay. Thanks a lot.

好的。多謝。

Tal Wooley, RBC Capital Markets.

塔爾·伍利，加拿大皇家銀行資本市場。

Hi, good morning.

早上好。

Good morning.

早上好。

Just wanted to confirm on the pricing side, just to make sure I've got this clear, that effectively the permanent list price reduction you're taking today puts -- is equivalent to some of the discounting action that you've already been taking. It's not an additional 13% on top of prior discounting?

只是想在定價方面進行確認，只是為了確保我已經清楚地表明，您今天採取的永久標價下調實際上相當於您已經採取的一些折扣行動。不是在之前的折扣基礎上再額外加13%嗎？

It's based on the existing pricing action, give or take roughly about that amount, yes.

它基於現有的定價行為，大致給出或接受大約這個金額，是的。

Okay, great. I guess my next question would just be about the activewear capacity. In -- it sounds to me like basically this year that there will effectively be no net activewear capacity increase this year, is that a fair statement?

好的，太好了。我想我的下一個問題只是關於運動服的容量。在我看來，今年基本上不會有淨運動服產能增加，這是一個公平的說法嗎？

Well, what we're doing is, and one of the reasons we're taking downtime and managing inventories is we're actually building our capacity. So there's two ways you can handle capacity reductions, let's say, for example. One is to just take capacity down. Or two is to take time out. So the money we're spending theoretically in taking time out is allowing us to increase our capacity to have a run rate to support future sales.

好吧，我們正在做的是，我們採取停機時間和管理庫存的原因之一是我們實際上正在建設我們的能力。例如，有兩種方法可以處理容量減少問題。一是減少產能。二是抽出時間。因此，理論上我們花在抽出時間上的錢可以讓我們提高運行率的能力，以支持未來的銷售。

And because it takes a long time to train and build things up. So our capacity this year is still building. But what we're doing is we're taking time out to bring it down to a normalized level, let's say, to support our sales. But the actual capacity is growing.

因為需要很長時間來訓練和建立東西。所以我們今年的產能仍在建設中。但我們正在做的是花時間將其降至正常水平，比如說，以支持我們的銷售。但實際容量正在增長。

So in the event that our business grows the next year, and you've got to understand next year, is that we're going to have a good growth year as we exit 2012. There's certain things that are not -- like the non-recurrence of destocking alone, let's say, for example, is going to be positive to unit volumes as we go forward into next year.

因此，如果我們的業務明年有所增長，並且您必須了解，明年我們將在 2012 年結束時迎來良好的增長年。有些事情並非如此，例如，當我們進入明年時，僅去庫存不再重複就會對單位銷量產生積極影響。

So with all the initiatives we have in place with our retail initiatives, our wholesale initiatives, where we're going -- feel that we're going to continue to keep all our markets growing and market share, market recovery, international and other markets, product expansions. All of our capacity is really geared and in place to support this. So, as we go forward and build capacity, we will be in a position to capitalize on sales growth in 2013.

因此，通過我們在零售計​​劃、批發計劃等方面採取的所有舉措，我們將繼續保持所有市場的增長以及市場份額、市場復甦、國際和其他市場，產品擴展。我們所有的能力都已準備好並到位以支持這一目標。因此，隨著我們繼續前進並建設產能，我們將能夠充分利用 2013 年的銷售增長。

Okay. So it's merely a question of in the short run, that, I think probably the Street was banking on there being more volumes in play for next year. But that you're going to be taking more downtime this year, reducing your effective capacity, but you expect to see it increase in the years beyond.

好的。因此，從短期來看，這只是一個問題，我認為華爾街可能指望明年會有更多交易量。但是今年您將需要更多的停機時間，從而降低您的有效容量，但您預計在未來幾年中它會增加。

Yes, but the unit per dozen per week is increasing during the year. But the capacity in dozens total for the year would support the sales level and manage inventories. So that as we go into 2013, we will be prepared to have the capacity to support our 2013 initiatives.

是的，但這一年中每週每打的數量正在增加。但今年總共數十個產能將支持銷售水平並管理庫存。因此，當我們進入 2013 年時，我們將做好準備，有能力支持我們 2013 年的舉措。

As well as we'll have the ability that if business picks up, either the market grows or we develop more retail programs, or more market share or whatever area of opportunity for us to grow is, we'll be able to capitalize that as we go forward. Everything's installed. There's nothing stopping us now, like in the past where we were sold out and we had back orders. So right now we're in a different type of position.

我們將有能力，如果業務好轉，無論是市場增長，還是我們開發更多的零售項目，或者更多的市場份額，或者我們增長的任何領域的機會，我們都將能夠利用這一點我們繼續前進。一切都安裝好了。現在沒有什麼能阻止我們，就像過去一樣，我們的產品已售罄，訂單也被延期。所以現在我們處於不同的位置。

But it's almost an easier position to deal with because now we're aggressively going after ways and opportunities to go and sell our capacity. This has probably been the first time in the last I don't know how many years, we've had capacity to sale. So the shoe's on the other foot. But it's exciting times and we're really looking forward to it. And there's lots of opportunity out there for us.

但這幾乎是一個更容易處理的情況，因為現在我們正在積極尋找方法和機會來出售我們的產能。這可能是過去我不知道多少年來我們第一次有能力銷售。所以鞋子在另一隻腳上。但這是激動人心的時刻，我們真的很期待。我們有很多機會。

You don't sound any less confident about your ability to sell that full 30 million down the road.

聽起來你對自己未來賣出 3000 萬美元的能力並沒有信心不足。

No, not at all.

一點都不。

Okay. I guess my last question would just be -- just to be clear, if we're thinking about sock volumes ex the incremental contribution from Gold Toe, that was still probably negative throughout the year as you wind down private label programs?

好的。我想我的最後一個問題是——澄清一下，如果我們考慮的是襪子銷量（除金腳趾的增量貢獻外），那麼當您結束自有品牌項目時，全年可能仍然是負數？

Well, what's going to happen is that the profitability in retail is going to come through. And the lack of profitability is caused by high cost cotton, manufacturing efficiencies, and the fact that price increases were only effective towards the end of our fiscal year.

好吧，即將發生的事情是零售業的盈利能力將會實現。盈利能力不足的原因是棉花成本高、製造效率高，以及價格上漲僅在我們財年末才有效。

As we go forward, just on a stand-alone basis, the existing business and what we're running and planning for, for 2012, will gradually become profitable as we go through the year. As we shed our -- as we get these new price increases, reduce our high cost cotton and manufacturing efficiencies.

隨著我們的前進，僅在獨立的基礎上，現有業務以及我們正在運營和計劃的 2012 年業務將在這一年中逐漸實現盈利。當我們擺脫這些新的價格上漲時，就會降低我們的高成本棉花和製造效率。

The minimal effect in terms of just regarding a program that we won't have next year, there are still some programs, like I said in our portfolio, of potentially $30 million to $40 million, that we're still questioning on a long-term basis, but we're evaluating. But overall, as you take what we have today, we will definitely be in a gradual profit mode.

就我們明年不會有的計劃而言，影響最小的是，仍然有一些計劃，就像我在我們的投資組合中所說的那樣，可能價值3000 萬到4000 萬美元，我們仍然對長期存在質疑。術語基礎，但我們正在評估。但總體而言，就我們今天所擁有的而言，我們肯定會處於逐步盈利的模式。

And, as well as, as we go into Gold Toe and we look at the consolidation of Gold Toe, there's a lot of synergies and accretion from the Gold Toe acquisition that's not factored into a lot of our numbers, as those materialized during the year. So as we exit -- we're going to gradually get some of those as we go through 2012. But as we exit the fiscal year, we're going to be a much better position in retail to have substantial earnings power in 2013.

而且，當我們進入Gold Toe 並研究Gold Toe 的整合時，我們發現收購Gold Toe 產生了很多協同效應和增值，但這些協同效應和增值並未計入我們的很多數據中，因為這些數據在這一年中實現了。因此，當我們退出時，我們將在 2012 年逐步獲得其中一些。但當我們結束本財年時，我們在零售業的地位將會好得多，並在 2013 年擁有可觀的盈利能力。

So you're still on track to bring in, in-house, some of those Gold Toe volumes this year?

那麼今年你們仍然有望在內部引進一些《Gold Toe》書籍嗎？

Correct.

正確的。

Okay, perfect. Thank you very much.

好的，完美。非常感謝。

Thank you.

謝謝。

David Glick, Buckingham Research Group.

大衛·格利克，白金漢研究小組。

Good morning, just a couple of questions about the retail business. Just have an overview question in terms of how retailers are looking at this dramatic decline in the cost of cotton versus the distributor screen print channel. What gives you the confidence that retailers may not behave in the same fashion? And attempt to get gross selling price decreases, given the decline in cotton costs?

早上好，有幾個關於零售業務的問題。就零售商如何看待棉花成本相對於分銷商絲網印刷渠道的大幅下降而言，有一個概述問題。是什麼讓您相信零售商可能不會以同樣的方式行事？鑑於棉花成本下降，試圖降低總售價？

We're not planning on it. In fact, the way we've positioned our own pricing, we feel comfortable because the products in which we're selling at retail, and our retail price points, are still significantly lower than I would say the benchmark in the market because we didn't bring our prices up as much as, let's say for example, a lot of the national brands did.

我們沒有計劃。事實上，我們對自己定價的定位方式讓我們感覺很舒服，因為我們零售銷售的產品以及我們的零售價仍然大大低於我所說的市場基準，因為我們沒有我們的價格不會像許多民族品牌那樣提高。

So that's the first thing. And I think that what's going to end up happening just like in any other business, is that, my opinion is, is that you'll see a lot more promotional activity in back-to-school and other areas, for example, and other ways to bring price to market.

這是第一件事。我認為最終會發生的事情就像在任何其他行業一樣，我的觀點是，你會在返校和其他領域看到更多的促銷活動，例如，將價格推向市場的方法。

But where we're positioned, we feel comfortable ourselves that our pricing is in line with the future price of cotton. And that we didn't go up all the way and we're feeling very comfortable. And we're very optimistic that as we go into lesser cost cotton in the back half of the year, looking at ways to drive new business and new opportunities.

但就我們的定位而言，我們對自己的定價與未來棉花價格一致感到滿意。而且我們並沒有一路上升，我們感覺很舒服。我們非常樂觀地認為，隨著我們在今年下半年進入成本較低的棉花市場，尋找推動新業務和新機會的方法。

And you didn't talk much about the underwear business. What's been happening with your programs at retail? And what are the puts and takes in terms of programs you've been gaining or losing? What's the outlook on the underwear side?

而且你並沒有過多談論內衣業務。你們的零售項目進展如何？就您獲得或失去的計劃而言，您的看跌和接受是什麼？內衣方面的前景如何？

Right now, our business set is pretty stable. We're planning right now a stable year-over-year business relative in underwear. We are planning on launching a lot of new programs under the Gold Toe and Gold Toe brands. We're working on levering those, like I said before, in underwear and as well as other product categories.

目前，我們的業務相當穩定。我們現在正計劃在內衣領域建立一個穩定的年度業務親戚。我們計劃在 Gold Toe 和 Gold Toe 品牌下推出許多新項目。正如我之前所說，我們正在努力在內衣和其他產品類別中利用這些優勢。

We're also aggressively looking for ways to -- and customers to lever our Gildan underwear as well. We're actively pursuing programs today. The existing programs are pretty well online on a year-over-year basis and we're excited for new opportunities right now.

我們還積極尋找方法和客戶來利用我們的 Gildan 內衣。我們今天正在積極開展計劃。與去年同期相比，現有的在線項目進展順利，我們現在對新的機會感到興奮。

And can you clarify what's going on with your Starter underwear program at Walmart? Looks like you may have lost some space there. If you can help us understand what's happening there?

您能澄清一下沃爾瑪的 Starter 內衣計劃的進展情況嗎？看起來您可能在那裡失去了一些空間。您能否幫助我們了解那裡發生了什麼？

Well, that happened -- we lost 2 feet of space. But we actually didn't lose any volume because our square foot space is actually producing well. And, what Starter wanted to do is, they actually put in a real performance underwear, which has got stretch and so forth, and it didn't perform very well, to be perfectly honest with you.

好吧，事情發生了——我們失去了 2 英尺的空間。但實際上我們並沒有損失任何體積，因為我們的平方英尺空間實際上生產得很好。而且，Starter 想要做的是，他們實際上放入了真正的高性能內衣，具有彈力等，但老實說，它的性能不是很好。

Within the existing space that we have, based on the performance of our brand, we actually are selling equally to what we had with the more space. Walmart is excited. They have got the brand priced right. And we're looking for another good year in 2012.

在我們現有的空間內，根據我們品牌的表現，我們的銷售實際上與我們擁有更多空間的情況相同。沃爾瑪很興奮。他們的品牌定價合適。我們期待 2012 年又是一個美好的一年。

And if you look at the quality relationship between what we're offering today and even in the Starter brand, relative to what's out in the market, for the price it's the number one selling -- at least the number one product on the floor, that's for sure. So the loss of space didn't affect our sell through.

如果你看看我們今天提供的產品之間的質量關係，甚至是Starter 品牌的產品，相對於市場上的產品，就價格而言，它是銷量第一的產品——至少是市場上排名第一的產品，這是肯定的。所以空間的損失並沒有影響我們的銷售。

Okay, and then, just last question, just to clarify, the gross selling price decrease that you just announced, that was around 13%. And that basically rescinds about half of the price increases that you put through, or could you -- I just want to make sure I understand that correctly.

好的，然後，最後一個問題，澄清一下，您剛剛宣布的總售價下降了 13% 左右。這基本上取消了你所實施的大約一半的價格上漲，或者你可以——我只是想確保我正確理解這一點。

Well, we reduced our prices roughly about $3.00 to $4.00 on a basic cotton T-shirts. And that is in line with roughly a little bit more than half of the price increases, yes.

好吧，我們將基本款棉質 T 恤的價格降低了約 3.00 至 4.00 美元。是的，這與大約一半以上的價格上漲是一致的。

Okay. Thank you very much. Good luck.

好的。非常感謝。祝你好運。

Thanks.

謝謝。

Susan Anderson, Citigroup Investment Research.

蘇珊·安德森，花旗集團投資研究部。

Good morning, everyone.

大家，早安。

Good morning.

早上好。

So just a quick question. I may have missed it, but if you could maybe touch a little bit on what you thought retail, I know there were some competitors talking about destocking and some other potential business. And maybe if you could give some color on that and how it impacted your business and what you're seeing now.

所以只是一個簡單的問題。我可能錯過了，但如果你能談談你對零售業的看法，我知道有一些競爭對手正在談論去庫存和其他一些潛在業務。也許您可以對此進行一些說明，以及它如何影響您的業務以及您現在所看到的情況。

Yes, there was some destocking in retail in the fourth quarter. But right now, I think that's behind us. And like everybody has seen during this weekend -- last weekend, sell-throughs were pretty good. I walked the stores myself and there were a lot of holes in the stores. If you look around, the shelves are pretty empty, at least in the mass markets and the ones I went to visit.

是的，第四季度零售業出現了一些去庫存的情況。但現在，我認為這已經成為過去。就像每個人在這個週末看到的那樣 - 上週末的銷售量相當不錯。我親自逛了商店，發現商店裡有很多洞。如果你環顧四周，你會發現貨架上空空如也，至少在大眾市場和我去過的那些地方是這樣。

I would say that the destocking has occurred. Retailers are obviously skeptical themselves about managing their own inventories and their own cash flow. And that's behind us now. And I think that as we go forward, they will stock the shelves based on the demand from the end user which seems to hopefully have picked up.

我想說的是去庫存已經發生了。零售商顯然對管理自己的庫存和現金流持懷疑態度。現在這一切都已經過去了。我認為，隨著我們的前進，他們將根據最終用戶的需求來備貨，而最終用戶的需求似乎有望有所回升。

Okay, great. That's really helpful. Then just really quick, a follow-up on the capacity question earlier. Maybe if you could talk about once we receive -- we see a return to a better macro environment, a better screen print environment, your expectations for Rio Nance 5 and then 1, I guess, and 6, and where you see that capacity going. Should I think about it in terms of US taking more market share there, or is it going to be mainly international and retail?

好的，太好了。這真的很有幫助。然後非常快地跟進之前的容量問題。也許您可以談談我們收到的信息——我們看到更好的宏觀環境、更好的絲網印刷環境的回歸、您對Rio Nance 5 號、然後1 號（我猜）和6 號的期望，以及您認為產能的去向。我應該考慮美國在該地區佔據更多市場份額，還是主要是國際和零售市場？

Well, what we said in our growth drivers are continue hopefully taking more market share in our screen print channel, levering the market recovery and the market share that we have today. The market itself is retracted from the highs of 2007 by almost 10 million dozen, as we speak today. So if our 60% to whatever percent share that we do have, those are -- that's an opportunity for us as this market recovers.

好吧，我們在增長動力中所說的是繼續希望在我們的絲網印刷渠道中佔據更多的市場份額，利用市場復甦和我們今天擁有的市場份額。正如我們今天所說，市場本身已從 2007 年的高點回落了近 1000 萬打。因此，如果我們擁有 60% 到任何百分比的份額，那麼隨著市場復甦，這對我們來說是一個機會。

And lowering price will help that recovery. We're going to have a large growth in international and other markets this year. A large part of that growth is actually offsetting the decrease in the US distributor market. But, again, that's an area where we think we have continued opportunity to lever.

降低價格將有助於復蘇。今年我們將在國際和其他市場實現大幅增長。這一增長的很大一部分實際上抵消了美國分銷商市場的下降。但是，我們再次認為，在這個領域我們有繼續發揮槓桿作用的機會。

And we're going to continue to add new products in our line, not just in the North American markets, but as well as our international markets, where we don't have as many -- don't offer as extensive product line in Europe, for example, as we offer in the United States. And there's still a lot of product we can offer in our US market. This year, we've gone and added about 20% more product offering even within our US channel.

我們將繼續在我們的產品線中添加新產品，不僅是在北美市場，而且還有我們的國際市場，我們在國際市場上沒有那麼多產品——不提供如此廣泛的產品線。例如，歐洲，正如我們在美國提供的那樣。我們仍然可以在美國市場提供很多產品。今年，我們甚至在美國渠道內增加了約 20% 的產品供應。

And that should help generate more market share. We're very comfortable that the capacity we're bringing on and our business plans to support our wholesale growth. And you align that as well as the ability for us to lever our retail, and primarily all of our retail sales today and the brands we're selling and the products we're selling are mainly in socks.

這應該有助於創造更多的市場份額。我們對我們所帶來的產能和業務計劃支持我們的批發增長感到非常滿意。您可以調整這一點以及我們槓桿零售的能力，主要是我們今天所有的零售額以及我們銷售的品牌和我們銷售的產品主要是襪子。

As we lever these opportunities and these brands into activewear and underwear that will use up capacity that we've installed as well. We feel comfortable with all the growth initiatives with our capacity. That's why we're taking time out and not just reducing our capacity, that we're continuing building so the actual run rate at the end of the year will be significantly higher than it was at the beginning of the year. And hopefully we'll be able to capture the opportunities as we go forward in 2013.

當我們利用這些機會和這些品牌生產運動服和內衣時，這也將耗盡我們已安裝的產能。我們對我們能力範圍內的所有增長舉措感到滿意。這就是為什麼我們要抽出時間，而不僅僅是減少產能，而是繼續建設產能，以便年底的實際運行率將顯著高於年初。希望我們能夠在 2013 年繼續前進時抓住機遇。

Okay, thanks. And then, just one last question on the guidance. It seems like the first quarter is taking a big portion of the hit for 2012 guidance in terms of where the consensus was. Can you maybe give a little bit more color on how you see each quarter changing from the first quarter, like, what sequentially gets better?

好的謝謝。然後，還有關於指南的最後一個問題。就共識而言，2012 年指引受到的打擊似乎主要是在第一季度。您能否對每個季度與第一季度相比的變化進行更多說明，例如哪些方面會依次變得更好？

We're not going to give quarterly guidance. We'll give each quarter at a time as we report the previous quarter. But what you can see from the map is that the cumulative of the next three quarters is an EPS of (inaudible) so obviously that's what we reflect in our guidance for the balance of the year.

我們不會提供季度指導。我們將在報告上一季度時一次給出每個季度的數據。但您從地圖上可以看到，未來三個季度的累計每股收益為（聽不清），因此顯然這就是我們在今年剩餘時間的指導中所反映的內容。

Okay, great. Thanks, guys.

好的，太好了。多謝你們。

Thank you.

謝謝。

We are now at the end of the allocated time for the call. I will now return the call to Sophie Argiriou for some final remarks.

現在，通話的分配時間即將結束。現在我將回電給索菲·阿吉里烏，請其作最後發言。

Thank you. Thank you all for joining us, once again. I would also like to take the opportunity to wish everyone all the best for the holiday season. And we look forward to speaking to you in the new year at our next earnings conference call in February. Have a good day.

謝謝。再次感謝大家加入我們。我也想藉此機會祝大家節日快樂。我們期待在新的一年二月份的下一次收益電話會議上與您交談。祝你有美好的一天。

Ladies and gentlemen, this concludes the conference call for today. We thank you for your participation. You may now disconnect your line, and have a great day.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開線路，祝您有美好的一天。