In The Sweet Hereafter (1997), what did the following dialogue (at around the 47 min mark) mean?
Nicole Burnell: I really liked her.
Billy Ansell: Well, she really liked you. [Pause.] And I think she probably would've given you that stuff herself if she hadn't outgrown it or ... [Catches himself, looks like he realizes he's said something wrong.]
Nicole: What do you mean, out ... outgrown it?
Billy: Uh ... I'm not sure.
I had the same question as Nicole and didn't "get" this bit. Why did Billy say that?