Company Overview - Proactive is a provider of fast, accessible, informative, and actionable business and finance news content aimed at a global investment audience [2] - The company operates with a team of experienced and qualified news journalists across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the team includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

Core Insights - Gildan has entered into an agreement granting exclusive wholesale distribution rights to S&S Activewear for its American Apparel® brand in the U.S. imprintables market, aimed at enhancing brand awareness and driving sales [1][3] - The American Apparel® brand is characterized by its commitment to meaningful design, premium quality, and sustainability, appealing to customers seeking timeless styles [2][4] - The partnership is set to take effect on December 28, 2025, and is expected to broaden customer access to the American Apparel® brand [5] Company Overview - Gildan is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, and socks, marketed under various brands including Gildan®, American Apparel®, and others [6][7] - Gildan operates large-scale, vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh, with a strong commitment to labor, environmental, and governance practices [7] - S&S Activewear, founded in 1988, is a technology-enabled distributor of apparel and accessories in the U.S. and Canada, offering over 100 brands and servicing a wide range of customers through its extensive warehouse network [8]

Core Insights - Gildan Activewear has appointed S&S Activewear as the exclusive wholesale distributor for its brands in the Canadian imprintables market, effective December 28, 2025 [1][3]. Group 1: Partnership Details - The partnership aims to enhance product availability and streamline the ordering process for Gildan's Canadian customers through S&S Activewear's distribution network [2][3]. - S&S Activewear will provide improved service with inventory depth that allows for one and two-day service to over 99% of the Canadian population [3]. Group 2: Company Background - Gildan is a leading manufacturer of basic apparel, offering products such as activewear, underwear, and socks, marketed under various brands including Gildan, American Apparel, and Champion [4][5]. - The company operates large-scale manufacturing facilities primarily in Central America, the Caribbean, North America, and Bangladesh, with a strong commitment to ESG practices [5]. Group 3: S&S Activewear Overview - S&S Activewear, founded in 1988, is a major distributor of apparel and accessories in North America, offering over 100 brands and operating more than 6 million square feet of warehouse space [6]. - The company serves a diverse customer base, including retail brands, e-commerce companies, and garment decorators [6].

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]

Financial Data and Key Metrics Changes - The company reported record second quarter sales of $919 million, an increase of 6.5% year over year, driven by strong Activewear sales growth of 12% [6][12] - Adjusted diluted EPS reached $0.97, reflecting a 31% increase year over year, indicating a focus on profitable growth [7][16] - Gross margin improved to 31.5%, a 110 basis point increase over the prior year, primarily due to lower raw material and manufacturing costs [15] - Operating cash flow was $46 million, down from $113 million in the previous year, reflecting higher working capital investments [16] Business Line Data and Key Metrics Changes - Activewear sales increased by 12%, driven by higher sales volumes and favorable product mix [13] - Hosiery and underwear sales decreased by 23% year over year, attributed to broad-based market demand softness and program resets [14] - International market sales declined by 14% year over year, with demand moderating in Europe and softness in Asia [13] Market Data and Key Metrics Changes - The company experienced a slight tailwind from orders placed in advance of announced pricing actions, contributing to strong sales in North America [13] - The macroeconomic backdrop has led to a cautious outlook, with expectations of low single-digit growth in the overall market for the year [30][79] Company Strategy and Development Direction - The company is executing its Gildan Sustainable Growth strategy, focusing on operational agility and innovation [6][19] - The manufacturing complex in Bangladesh is fully ramped up, contributing to operating margin expansion [18][54] - The company is committed to maintaining a competitive advantage through significant U.S. cotton and yarn content in its products, allowing for tariff savings [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite prevailing uncertainties in the macroeconomic environment [10][19] - The outlook for 2025 includes reaffirmed revenue growth expectations of mid-single digits and adjusted diluted EPS in the range of $3.40 to $3.56 [19][20] - Management noted that three-quarters of expected sales growth in 2025 will come from new programs, with a strong pipeline of product launches [9][19] Other Important Information - The company repurchased approximately 2.9 million shares, returning $206 million in capital to shareholders, including $68 million in dividends [17] - The adjusted effective income tax rate for the quarter was 17.4%, down from 27.2% the previous year, reflecting changes in tax legislation [16] Q&A Session Summary Question: Can you quantify the shifts that occurred in Q2? - Management indicated that Q2 was strong, with Activewear sales up 12%, aided by orders placed ahead of pricing actions. Guidance for Q3 suggests low single-digit revenue growth, with some sales shifting to Q4 [26][30] Question: What was the impact from the Nike sockpaws versus the core business? - Management acknowledged headwinds in the innerwear category but expects sequential improvement as program resets continue throughout the year [31][35] Question: Can you expand on the momentum from national accounts? - Management noted that changes in the industry landscape and tariffs have led customers to seek different suppliers, benefiting the company due to its vertically integrated manufacturing [40][41] Question: How much can throughput in Honduras be increased? - Management stated that they can increase capacity by about 10% across existing facilities in Honduras [49] Question: Is the Bangladesh facility running at optimal efficiency? - Management confirmed that the Bangladesh facility is fully ramped up and contributing to operating margin improvements [54] Question: What is the outlook for corporate promotional activity? - Management expressed cautious optimism, noting that while corporate promotional activity is currently weak, they expect slight market improvement as the year progresses [78][81] Question: How does the company view market weakness as an opportunity for acquisitions? - Management indicated a preference for gaining market share organically rather than through acquisitions, focusing on leveraging existing brands and innovation [100][102]

Financial Data and Key Metrics Changes - The company reported record second quarter sales of $919 million, an increase of 6.5% year over year, driven by strong Activewear sales growth of 12% [5][11] - Adjusted diluted EPS reached $0.97, reflecting a 31% increase year over year, indicating a focus on profitable growth [6][15] - Gross margin improved to 31.5%, a 110 basis point increase over the prior year, primarily due to lower raw material and manufacturing costs [14] - Operating cash flow was $46 million, down from $113 million in the previous year, mainly due to higher working capital investments [15] Business Line Data and Key Metrics Changes - Activewear sales increased by 12%, supported by higher sales volumes and favorable product mix [12] - Hosiery and underwear sales decreased by 23% year over year, attributed to broad-based market demand softness and unfavorable mix [13] - International market sales declined by 14% year over year, with demand moderating in Europe and softness in Asia [12] Market Data and Key Metrics Changes - The company experienced strong sales to North American distributors, complemented by momentum with national account customers [12] - The international market faced challenges due to macroeconomic conditions, particularly in Europe and Asia [12][17] Company Strategy and Development Direction - The company is executing its Gildan Sustainable Growth strategy, focusing on operational agility and innovation [5][19] - The manufacturing complex in Bangladesh is fully ramped up, contributing to operational efficiency and cost advantages [17][19] - The company is committed to launching additional industry-leading innovations and maintaining a strong ESG focus [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong financial performance despite prevailing uncertainties [9][19] - The company reaffirmed its full-year guidance for 2025, expecting mid-single-digit revenue growth and an increase in adjusted operating margin [19][20] - Management noted that three-quarters of expected sales growth in 2025 will come from new programs [7][19] Other Important Information - The company repurchased approximately 2.9 million shares, returning $206 million in capital to shareholders, including $68 million in dividends [15] - The adjusted effective income tax rate for the quarter was 17.4%, down from 27.2% the previous year [15] Q&A Session Summary Question: Can you quantify the shifts that occurred in Q2? - Management indicated that Q2 was strong, with Activewear sales up 12%, aided by orders placed in advance of pricing actions. They expect revenue growth to be low single digits in Q3 due to timing shifts [24][26][30] Question: What was the impact from the Nike sockpaws versus the core business? - Management acknowledged headwinds in the innerwear category but expects sequential improvement as program resets occur throughout the year [32][34] Question: Can you expand on the momentum from national accounts? - Management noted that changes in the industry landscape and tariffs are driving customers to seek different suppliers, benefiting the company due to its vertically integrated manufacturing [40][41] Question: How much can you increase throughput in Honduras? - Management stated they could increase capacity by about 10% across existing facilities, which will be implemented throughout the year [49][50] Question: Is the Bangladesh facility running at optimal levels? - Management confirmed that the Bangladesh facility is fully ramped up and contributing to operating margin expansion, with further improvements expected as yarn modernization is implemented [53][56] Question: What is the outlook for corporate promotional activity? - Management expressed cautious optimism, noting that while corporate promotional activity is currently weak, they expect slight improvement as the year progresses [78][80] Question: How does the company view market weakness as an opportunity for acquisitions? - Management indicated a focus on gaining market share rather than pursuing acquisitions, leveraging their low-cost manufacturing and brand strength [101][102]

2025 Second Quarter Shareholder Report | Contents | | | --- | --- | | MD&A | | | 1.0 Preface | 2 | | 2.0 Caution regarding forward-looking statements | 2 | | 3.0 Our business | 4 | | 4.0 Strategy | 8 | | 5.0 Operating results | 9 | | 6.0 Financial condition | 17 | | 7.0 Cash flows | 19 | | 8.0 Liquidity and capital resources | 21 | | 9.0 Legal proceedings | 26 | | 10.0 Financial risk management | 26 | | 11.0 Critical accounting estimates and judgments | 26 | | 12.0 Accounting policies and new accounting sta ...

Core Insights - Gildan Activewear Inc. reported record second quarter results with net sales of $919 million, reflecting a 6.5% increase year-over-year, driven by a 12% growth in Activewear sales [3][7][29] - The company reaffirmed its full year 2025 guidance while narrowing the range for adjusted diluted EPS to between $3.40 and $3.56, indicating a year-over-year increase of approximately 13% to 19% [16][20] - Gildan's Sustainable Growth strategy is credited for the strong financial performance, showcasing the resilience of its low-cost vertically integrated business model [2][15] Financial Performance - Gross profit for Q2 2025 was $289 million, representing 31.5% of net sales, an improvement from 30.4% in the same period last year [4][27] - Operating income reached $199 million, or 21.7% of net sales, compared to $141 million, or 16.4% of net sales in the prior year [6][27] - Adjusted diluted EPS for Q2 2025 was a record $0.97, up 31.1% from $0.74 in Q2 2024 [8][43] Sales Breakdown - Activewear sales totaled $822 million, up 12% year-over-year, while Hosiery and Underwear sales decreased by 23.3% to $96 million [3][29] - Year-to-date net sales for the first half of 2025 were $1,630 million, a 4.6% increase compared to the same period last year [9][27] - International sales saw a decline of 14.1% year-over-year, primarily due to demand softness in certain markets [3][29] Cost Management - SG&A expenses were significantly reduced to $82 million from $124 million in the prior year, reflecting a decrease in costs related to the proxy contest and leadership changes [5][27] - The company generated cash flow from operations of $188 million, with free cash flow amounting to $154 million [7][14] Shareholder Returns - Gildan returned $145 million to shareholders through share repurchases and dividends [7][14] - A quarterly dividend of $0.226 per share was declared, payable on September 15, 2025 [19] ESG Recognition - Gildan was recognized as one of the Best 50 Corporate Citizens in Canada and included in TIME's World's Most Sustainable Companies list [18]

Core Viewpoint - Gildan Activewear (GIL) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Gildan indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [4]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions beneficial for investment decisions [5]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks into five groups, with a strong historical performance [6]. Current Earnings Estimates for Gildan - Gildan is expected to earn $3.46 per share for the fiscal year ending December 2025, with no year-over-year change, while the Zacks Consensus Estimate has increased by 0.2% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 20% receiving a "Strong Buy" or "Buy" rating [8][9]. - Gildan's upgrade to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Viewpoint - Gildan Activewear Inc. is set to report its second quarter 2025 financial and operating results on July 31, 2025, with a conference call scheduled for discussion with financial analysts and institutional investors [1][2]. Company Overview - Gildan is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, and socks to a diverse customer base including wholesale distributors, screenprinters, retailers, and global lifestyle brand companies [4]. - The company markets its products across North America, Europe, Asia Pacific, and Latin America under various brands including Gildan, American Apparel, Comfort Colors, GOLDTOE, and Peds, as well as through an exclusive licensing agreement for Champion in the printwear channel [4]. Manufacturing and ESG Practices - Gildan operates large-scale, vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh [5]. - The company is committed to industry-leading labor, environmental, and governance practices throughout its supply chain, which is integrated into its comprehensive ESG program as part of its long-term business strategy [5].