MONTREAL -- Gildan Activewear Inc. topped expectations and raised its dividend as it reported a fourth-quarter profit of US$173.9 million, up from US$67.4 million a year earlier.

The Montreal-based company, which keeps its books in U.S. dollar, says it will now pay a quarterly dividend of 16.9 cents per share, up from 15.4 cents.

The increased payment to shareholders came as the maker of T-shirts, underwear and socks said its profit for the quarter ended Jan. 2 amounted to 89 cents per diluted share compared with 34 cents per diluted share a year earlier.

Net sales totalled US$784.3 million for the quarter, up from US$690.2 million.

On an adjusted basis, Gildan says it earned 76 cents per diluted share, up from an adjusted profit of 45 cents per diluted share a year earlier.

Analysts on average had expected an adjusted profit of 60 cents per share and US$735.6 million in revenue, according to financial markets data firm Refinitiv.

Gildan also announced the appointment of former Unilever executive Dhaval Buch to the company's board of directors. Buch will serve on the board's corporate governance and social responsibility committee.