The cadence of industry demand appear to deteriorate in successive months during the third quarter with demand in June being down by 12%. However, it should be noted that June of 2010 was a very strong month which benefited from pre-buying in advance of a selling price increase, which was announced 2 months in advance and which was not applicable to back orders, so that the true magnitude of the decline in June is overstated.We believe that the decline in screenprint market demand in the third quarter is due to a combination of factors, including overall uncertainty about macro economic conditions, the possible impact and demand elasticity of successive selling price increases and delay in the timing of shipments from distributors to screenprinters, as screenprinters seek to benefit from declining cotton costs.
Gildan Activewear's CEO Discusses Q3 2011 Results - Earnings Call Transcript
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