Company Overview - Gildan Activewear Inc. (NYSE: GIL) is a notable player in the apparel industry, distinguishing itself from other companies in the sector [1]. Industry Focus - The article highlights the focus on cash flow and the potential for value and growth in the oil and natural gas sector, indicating a broader investment interest beyond apparel [1].

Group 1 - Gildan Activewear reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, with an earnings surprise of 3.51% [1] - The company achieved revenues of $711.7 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.08% and showing an increase from $695.8 million year-over-year [2] - Gildan has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Group 2 - The stock has underperformed the market, losing approximately 9.3% since the beginning of the year, compared to a 6% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.95 on revenues of $909.55 million, and for the current fiscal year, it is $3.45 on revenues of $3.39 billion [7] - The Textile - Apparel industry, to which Gildan belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, which may negatively impact stock performance [8]

2025 First 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 | 27 | | 12.0 Accounting policies and new accounting stan ...

Core Viewpoint - Gildan Activewear Inc. reported a strong performance in Q1 2025, with a 9% increase in Activewear sales, driven by strategic initiatives and a focus on sustainable growth despite a challenging macroeconomic environment [2][3][11]. Financial Performance - Net sales for Q1 2025 were $712 million, reflecting a 2.3% increase year-over-year, aligning with previous guidance of low single-digit growth [3][25]. - Activewear sales reached $647 million, up 9%, attributed to higher sales volumes and a favorable product mix in North America [3][26]. - Gross profit was $222 million, representing 31.2% of net sales, an improvement from 30.3% in the prior year [4][25]. - Operating income increased to $130 million, or 18.2% of net sales, compared to $105 million, or 15.1% of net sales, in the previous year [6][25]. - Adjusted diluted EPS remained flat at $0.59, while GAAP diluted EPS increased by 19.1% to $0.56 [8][9][25]. Cost Management - SG&A expenses decreased to $87 million from $105 million in the prior year, with adjusted SG&A expenses up 1% to $86 million [5][25]. - The company reported net financial expenses of $30 million, an increase of $7 million due to higher borrowing levels [7][25]. Cash Flow and Capital Allocation - Cash flows used in operating activities totaled $142 million, compared to $27 million in the same period last year, primarily due to an increase in non-cash working capital [10][47]. - Free cash flow consumed was $166 million, with capital expenditures of $23 million [10][47]. - The company returned $62 million to shareholders through share repurchases during the quarter [10][14]. 2025 Guidance - Gildan reaffirmed its full-year 2025 guidance, expecting mid-single-digit growth in net sales and an adjusted operating margin increase of approximately 50 basis points [12][14]. - Adjusted diluted EPS is projected to be in the range of $3.38 to $3.58, reflecting a year-over-year increase of approximately 13% to 19% [14][12]. ESG and Sustainability - Gildan was included in S&P's 2025 Sustainability Yearbook for the 13th consecutive year and recognized by CDP for its climate change disclosures [16]. Shareholder Returns - The Board declared a cash dividend of $0.226 per share, payable on June 16, 2025 [17].

Core Viewpoint - Gildan Activewear Inc. (GIL) is expected to report revenue growth in Q1 2025, with a consensus estimate of $711.1 million, reflecting a 2.2% increase year-over-year, while earnings per share are projected at 57 cents, indicating a 3.4% decline from the previous year [1][6]. Group 1: Financial Performance Expectations - The consensus estimate for revenues is $711.1 million, indicating a rise of 2.2% from the year-ago figure [1]. - The consensus estimate for earnings is 57 cents per share, which indicates a 3.4% drop from the year-ago quarter's actual [1]. - Gildan Activewear has a trailing four-quarter average earnings surprise of 5.3%, with a 3.8% surprise in the last reported quarter [2]. Group 2: Key Factors Influencing Results - The upcoming quarterly results are expected to reflect gains from Gildan's Sustainable Growth Strategy, focusing on capacity expansion, innovation, and ESG initiatives [3]. - The company has been enhancing its commercial capabilities and optimizing manufacturing processes, contributing to operational improvements [4]. - The Activewear segment is gaining momentum due to market share expansion and strong demand, particularly in international markets like Europe [5]. Group 3: Management Guidance and Market Conditions - Management anticipates net sales to grow low single digits year-over-year for Q1 2025, with mid-single digits growth projected when excluding the Under Armour sock license agreement [6]. - The adjusted operating margin is expected to expand by approximately 50 basis points [6]. - Challenges include inflationary pressures and softness in the hosiery and underwear category, which may impact profitability [7]. Group 4: Valuation and Stock Performance - Gildan Activewear has a forward 12-month price-to-earnings ratio of 11.74x, above the industry average of 10.11x, but below its five-year high of 33.64x [9]. - The stock has gained 24.6% over the past year, outperforming the industry's decline of 19% [9].

Company Overview - Gildan Activewear Inc. 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 [2] - The company markets its products across North America, Europe, Asia Pacific, and Latin America under a portfolio of brands including Gildan, American Apparel, Comfort Colors, GOLDTOE, and Peds, as well as through an exclusive licensing agreement for the printwear channel for Champion [2] Manufacturing and ESG Practices - Gildan operates large-scale, vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh [3] - The company is committed to industry-leading labor, environmental, and governance practices throughout its supply chain, which is part of its comprehensive ESG program embedded in its long-term business strategy [3] Upcoming Financial Results - Gildan will report its first quarter 2025 financial and operating results on April 29, 2025, with a press release issued after market close [1] - A conference call to discuss the results is scheduled for the same day at 5:00 PM ET, accessible via specific dialing instructions [1]

MONTREAL, March 19, 2025 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL: TSX and NYSE) announced today that Glenn J. Chamandy, President & Chief Executive Officer; Luca Barile, Executive Vice-President and Chief Financial Officer; and Jessy Hayem, Senior Vice-President, Head of Investor Relations and Global Communications, will participate in a fireside chat and one-on-one meetings with investors at the 28th Annual CIBC Retail and Consumer Conference in Toronto on Wednesday, March 26, 2025. About GildanGil ...

Core Viewpoint - Gildan Activewear Inc. has announced the pricing of a C$700 million offering of senior unsecured notes in three series, aimed at repaying existing debt and for general corporate purposes [1][3]. Group 1: Offering Details - The offering consists of C$150 million of floating rate senior unsecured notes due March 13, 2028, C$200 million of 3.630% fixed rate senior unsecured notes due March 13, 2028, and C$350 million of 4.149% fixed rate senior unsecured notes due November 22, 2030 [1][2]. - The 2028 Floating Rate Notes will bear interest at a rate equal to daily compounded CORRA plus 1.26% per annum, payable quarterly starting June 13, 2025 [2]. - The 2028 Fixed Rate Notes will have a fixed interest rate of 3.630% per annum, payable semi-annually starting September 13, 2025 [2]. - The 2030 Fixed Rate Notes will be issued at $999.89 per $1,000 principal amount and will bear interest at 4.149% per annum, payable semi-annually starting November 22, 2025 [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for the repayment of indebtedness under credit facilities and for other general corporate purposes [3]. Group 3: Underwriting and Ratings - The offering is being managed by a syndicate of agencies including BMO Capital Markets, CIBC Capital Markets, and TD Securities as joint bookrunners, with additional co-managers [4]. - The Notes have been assigned a provisional rating of BBB with a stable trend by DBRS Limited [5]. Group 4: Company Overview - Gildan is a leading manufacturer of everyday basic apparel, including activewear, underwear, and socks, marketed under various brands [10]. - The company operates large-scale manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh, with a strong commitment to ESG practices [11].

Core Viewpoint - Gildan Activewear Inc. (GIL) is experiencing significant growth, nearing its 52-week high, driven by market share expansion, strong sales growth, and operational efficiency [1][2]. Financial Performance - Gildan's fourth-quarter 2024 earnings report exceeded market expectations, showcasing robust revenue growth and margin expansion [2][8]. - Adjusted EPS increased by 10.7% year over year, while revenues grew by 5% [8]. - International sales surged by 20% for the second consecutive quarter, driven by strong demand in Europe [8]. - The Activewear segment grew by 11%, benefiting from increased sales volumes and innovative product launches [9]. - Gross margin improved to 30.8%, reflecting a 60-basis-point increase due to lower raw material costs [10]. Strategic Initiatives - Gildan's Sustainable Growth Strategy (GSG) has been pivotal in accelerating growth and enhancing consumer engagement [3][10]. - The company has optimized its global manufacturing footprint and captured market share in key growth categories [10]. - A new manufacturing complex in Bangladesh is fully operational, enhancing cost efficiency and global flexibility [11]. Future Outlook - For 2025, net sales growth is expected to be in the mid-single digits, with adjusted operating margin projected to improve by 50 basis points [12]. - Adjusted earnings are anticipated to be between $3.38 and $3.58 per share, indicating a year-over-year increase of 13-19% [12]. - Free cash flow is projected to exceed $450 million [12]. - The Zacks Consensus Estimate for EPS has seen upward revisions, indicating expected growth rates of around 4.4% and 5.8% for the current and next fiscal years, respectively [16]. Market Position - Gildan has demonstrated strong market momentum, outperforming the industry and the S&P 500 over the past six months [3][5]. - The stock is trading above its 50-day and 200-day moving averages, indicating robust upward momentum [5].

Core Viewpoint - Growth investors are attracted to stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Gildan Activewear (GIL) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 72.7%, with a projected EPS growth of 16.1% this year, significantly outperforming the industry average of 7.7% [4] Group 2: Financial Metrics - Gildan's year-over-year cash flow growth stands at 9.3%, which is notably higher than the industry average of -9.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 4.8%, compared to the industry average of 3.6% [6] Group 3: Earnings Estimates - The current-year earnings estimates for Gildan have been revised upward, with the Zacks Consensus Estimate increasing by 3% over the past month [7] - Gildan has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance [9]