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]

Gildan Activewear (GIL) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a ch ...

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].

Core Insights - Gildan Activewear Inc. has been recognized on Canada's Best 50 Corporate Citizens list for the fourth consecutive year, being one of only two companies in the Textiles and Clothing Manufacturing sector to achieve this honor [1] - The company is also featured on TIME's World's Most Sustainable Companies list, marking its presence as one of 13 Canadian companies and one of only two in the "Apparel, Footwear & Sporting Goods" subcategory [1] Group 1: Recognition and Awards - Gildan's inclusion in Canada's Best 50 Corporate Citizens is based on a dataset of companies with over $1 billion in annual revenues, evaluated on 25 key performance indicators (KPIs) related to sustainability and corporate responsibility [2] - TIME's World's Most Sustainable Companies list identifies the top 500 companies from a pool of 5,000, assessed across more than 20 key indicators, including sustainability ratings and commitments from reputable organizations [3] Group 2: 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 Champion® [4] - The company 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 [5]

Core Insights - Gildan Activewear Inc. has published its 2024 Environmental, Social, and Governance (ESG) Report, highlighting progress against its Next Generation ESG strategy targets [2][3] Group 1: ESG Achievements - The company reduced water intensity at its manufacturing facilities by 25.2% per kilogram produced compared to a 2018 baseline [5] - Sustainable cotton sourcing increased from 35.7% in 2023 to 77.3% in 2024 [5] - The percentage of recycled polyester or alternative fibers and/or yarns sourced doubled from 2023 to 2024 [5] - Gildan achieved ISO 45001 certification in two additional facilities in 2024, totaling five certified facilities [5] - The company was included in the Dow Jones Best-in-Class North America Index for the 12th consecutive year [5] - Gildan was recognized in the 2025 Sustainability Yearbook by S&P Global for the 13th consecutive year [5] - The company was included in CDP's Leadership Band in 2025 for its 2024 climate change disclosure, marking the fifth time it has received this recognition [5] - Gildan was named in the inaugural edition of TIME's World Most Sustainable Companies [5] - The company was recognized as one of Canada's Best 50 Corporate Citizens by Corporate Knights for the third consecutive year [5] Group 2: Company Overview - Gildan is a leading manufacturer of everyday basic apparel, including activewear, underwear, and socks, marketed under various brands [6] - The company operates vertically integrated, large-scale manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh [7] - Gildan's operations are supported by a strong commitment to industry-leading labor, environmental, and governance practices throughout its supply chain [7]

Company Performance - Gildan Activewear Inc. (GIL) has experienced a significant stock price increase of 44.8% over the past year, outperforming the Consumer Discretionary sector and the S&P 500, which rose by 12.6% and 9.7% respectively [1][2] - The stock is currently trading at $46.94, which is 15.3% below its 52-week high of $55.39 but at a 45.2% premium to its 52-week low [3] - GIL has outperformed key competitors such as Duluth Holdings, GIII Apparel Group, and Crocs, which saw declines of 58.8%, 10.3%, and 27.6% respectively over the same period [3] Strategic Initiatives - The company is benefiting from its Sustainable Growth strategy, focusing on organic growth through capacity expansion, innovation, and ESG practices [2][6] - Gildan aims to expand its global production capacity and improve its cost structure, innovation, and product development processes [6][8] - The company is leveraging its competitive advantage as a low-cost, vertically integrated manufacturer to enhance revenue growth and profitability [8] Financial Outlook - For 2025, management expects net sales to grow in the mid-single digits year over year, with adjusted earnings projected between $3.38 and $3.58 per share, indicating a year-over-year increase of 13-19% [9][10] - The adjusted operating margin is anticipated to improve by 50 basis points, and free cash flow is expected to exceed $450 million [9] Valuation Metrics - GIL's forward 12-month price-to-earnings (P/E) multiple is 13.03X, higher than the industry average of 11.01X, but below its median level of 13.87 [11]

Core Points - Gildan Activewear Inc. announced the election of eight nominees as directors during its annual meeting held on April 30, 2025, with a majority of votes cast in favor [1] - A majority of shareholders also supported the non-binding advisory vote on Executive Compensation and the reappointment of auditors [1] Voting Results - The appointment of auditors received 113,566,354 votes in favor, representing 88.79%, while 14,344,315 votes were against, accounting for 11.21% [2] - The election of directors showed strong support, with Michael Kneeland receiving 95.84% approval, Glenn J. Chamandy 99.94%, and Anne-Laure Descours 99.93% [2] - The advisory vote on Executive Compensation garnered 104,083,922 votes in favor, which is 83.00%, while 21,318,217 votes were against, making up 17.00% [2] Company Overview - Gildan is a leading manufacturer of everyday basic apparel, including activewear, underwear, and socks, serving a diverse customer base [3] - The company operates vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh, emphasizing strong labor, environmental, and governance practices [4]

Core Insights - Gildan Activewear Inc. reported first-quarter 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, driven by the execution of its GSG strategy despite macroeconomic challenges [1][2]. Financial Performance - Adjusted earnings were 59 cents per share, surpassing the Zacks Consensus Estimate of 57 cents, remaining flat year over year [2]. - Net sales reached $711.7 million, a 2.3% year-over-year increase, slightly above the Zacks Consensus Estimate of $711 million [2]. - Activewear segment sales totaled $647.4 million, reflecting a 9.3% year-over-year increase, attributed to higher sales volumes and a favorable product mix in North America [3]. - Hosiery and Underwear category net sales declined 38% year over year to $64.3 million, primarily due to the Under Armour phase-out and unfavorable product mix [3]. Regional Performance - U.S. sales increased 2.4% to $632.6 million from $618 million in the prior year [4]. - Canadian sales grew 10.3% to $27.9 million from $25.3 million [4]. - International sales declined 2.5% to $51.2 million from $52.5 million [4]. Margins and Costs - Adjusted gross profit was $221.9 million, up 5.1% year over year, with an adjusted gross margin increase of 90 basis points to 31.2% due to lower raw material costs [5]. - Adjusted SG&A expenses rose 1% year over year to $86.5 million, with a decline in percentage of net sales by 20 basis points [5]. - Adjusted operating income improved 7.9% to $135.5 million, with an adjusted operating margin increase of 100 basis points to 19% [5]. EBITDA and Cash Flow - Adjusted EBITDA totaled $165.8 million, representing a year-over-year increase of 5.5%, with an adjusted EBITDA margin expansion of 70 basis points to 23.3% [6]. - The company ended the quarter with cash and cash equivalents of $75.5 million, long-term debt of $1.8 billion, and stockholders' equity of $1.41 billion [7]. 2025 Outlook - For 2025, net sales growth is expected to be in the mid-single digits year over year, with an adjusted operating margin projected to improve by 50 basis points [8]. - Adjusted earnings are anticipated to be between $3.38 and $3.58 per share, indicating a year-over-year increase of 13-19% [8]. - Free cash flow is expected to exceed $450 million [8].