Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities, with only a small fraction of companies deemed suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the need for readers to conduct their own due diligence [2][3]

Core Insights - Gildan Activewear Inc. reported strong fourth-quarter 2024 results, with revenues and earnings exceeding expectations and showing year-over-year growth, driven by the execution of its GSG strategy [1][2] Financial Performance - Adjusted earnings were 83 cents per share, beating the Zacks Consensus Estimate of 80 cents, and increased by 10.7% from 75 cents in the prior-year quarter [2] - Net sales reached $821.5 million, a 5% year-over-year increase, surpassing the Zacks Consensus Estimate of $793 million [2] - Activewear sales totaled $714.1 million, marking a 10.9% year-over-year increase, supported by higher sales volumes and market share gains [3] - Hosiery and Underwear category net sales declined 22.6% year over year to $107.4 million, primarily due to the Under Armour phase-out, but excluding this impact, sales increased in the high-single digits [4] Regional Performance - U.S. sales increased by 4.4% to $730.6 million from $699.5 million in the prior year [6] - Canadian sales declined by 10.7% to $26.5 million from $29.7 million [6] - International sales grew by 20.3% to $64.4 million from $53.5 million in the previous year [6] Margins and Costs - Adjusted gross profit was $253 million, up 6.9% year over year, with an adjusted gross margin increase of 60 basis points to 30.8% due to lower raw material costs [7] - Adjusted SG&A expenses declined by 5% year over year to $77.9 million, with a 100 basis point decrease as a percentage of net sales [7] - Adjusted operating income improved by 13.3% to $175.1 million, with an adjusted operating margin increase of 160 basis points to 21.3% [8] - Adjusted EBITDA totaled $208.4 million, representing a year-over-year increase of 12.4%, with an adjusted EBITDA margin expansion of 170 basis points to 25.4% [8] Other Financials - Cash and cash equivalents at the end of the quarter were $98.8 million, with long-term debt of $1.24 billion and stockholders' equity of $1.46 billion [9] - Cash flows from operating activities were $210.5 million [9] 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 [10] - Adjusted earnings are anticipated to be between $3.38 and $3.58 per share, indicating a year-over-year increase of 13-19% [10] - Free cash flow is projected to exceed $450 million [10] - For Q1 2025, net sales are expected to increase in the low-single digits, with mid-single-digit growth projected when excluding the Under Armour impacts [11]

Financial Data and Key Metrics Changes - Gildan Activewear reported record fourth-quarter sales of $822 million, a 5% increase year-over-year, with adjusted EPS of $0.83, up 11% year-over-year [8][23] - For the full year, revenues reached approximately $3.3 billion, with adjusted operating margins of 21.3% and adjusted diluted EPS growth of 17% [9][23] - The company returned a record $889 million to shareholders in 2024, including dividends and share repurchases [24][25] Business Line Data and Key Metrics Changes - Activewear sales increased by $70 million or 11% year-over-year, driven by higher sales volumes [17][19] - Hosiery and underwear sales were down 23% due to the phase-out of Under Armour, but would have increased by high single digits without this impact [19][20] - The Comfort Colors brand saw a 40% increase in sales for the full year 2024 [11][64] Market Data and Key Metrics Changes - International sales increased by 20% year-over-year for the last two quarters, with strong performance in Europe [12][18] - The company experienced positive point-of-sale (POS) growth across channels and product lines, capturing market share in key growth categories [18][92] Company Strategy and Development Direction - Gildan Activewear is focused on its sustainable growth strategy (GSG), which includes capacity expansion, innovation, and ESG initiatives [9][26] - The company plans to achieve mid-single-digit net sales growth and mid-teen adjusted diluted EPS growth from 2025 to 2027 [9][29] - The company is expanding its product line and distribution through the Champion brand, which is expected to enhance market share [11][72] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, despite mixed macroeconomic conditions and geopolitical uncertainties [34] - The company anticipates revenue growth in the mid-single digits for 2025, with adjusted diluted EPS expected to be in the range of $3.38 to $3.58, representing a year-over-year increase of 13% to 19% [29][30] - The effective tax rate for 2025 is expected to remain similar to 2024 levels, reflecting the impact of global minimum tax [31] Other Important Information - The company announced executive leadership nominations and a CFO transition as part of a multiyear succession planning process [4][36] - The new manufacturing complex in Bangladesh is ramping up as planned, supporting growth expectations and cost structure improvements [26][126] Q&A Session Summary Question: Expectations for Activewear and hosiery and underwear in Q1 - Management expects Activewear to grow low single digits, with mid-single digits growth excluding Under Armour impact, while hosiery and underwear will be affected by the Under Armour phase-out [46][49] Question: Gross margin unpacking and pricing pressure - Gross margin for Q4 was 30.8%, up 60 basis points, with stable pricing expected to continue into 2025 [52][96] Question: Impact of new product innovation on sales - New product innovations, particularly soft cotton technology, are expected to drive significant sales growth, with three-quarters of revenue growth in 2025 coming from new programs [67][68] Question: Capital investment in yarn facilities and national account opportunities - Over $100 million has been invested in modernizing yarn facilities, with significant opportunities in national accounts, particularly with large mass market retailers [100][104] Question: Capacity utilization assumptions for 2025 - The company has ample capacity to support its guidance for 2025, with expectations to reach close to 100% ramp-up in Bangladesh by the end of Q2 2025 [112][128] Question: Competitive landscape and distributor consolidation - The company views distributor consolidation as a positive development, allowing for stronger partnerships and continued sales growth [134]

(all amounts are in U.S. dollars except where otherwise indicated) (1) Please refer to "Definition and reconciliation of non-GAAP financial measures" in this press release Gildan Reports Record Fourth Quarter Revenue and Adjusted Diluted EPS and Initiates Guidance for 2025 1 Montreal, Wednesday, February 19, 2025 - Gildan Activewear Inc. (GIL: TSX and NYSE) today announced results for the fourth quarter and full year ended December 29, 2024, and initiated annual guidance for 2025. In addition, the Company a ...

Executive Leadership Changes - Gildan Activewear Inc. announced executive leadership nominations and a CFO transition as part of a multi-year succession planning process to ensure continuity in the Gildan Sustainable Growth Strategy [1][2] - Chuck Ward has been appointed as Executive Vice President, Chief Operating Officer (EVP and COO), effective March 1, 2025, while Rhodri J. Harries will retire on January 1, 2026, after nearly 10 years in the role of EVP, Chief Financial and Administrative Officer [5] - Luca Barile will succeed Rhodri J. Harries as EVP, Chief Financial Officer, assuming responsibilities on March 1, 2025, after serving as CFO for Sales, Marketing and Distribution [5] Financial Performance and Guidance - Gildan announced its fourth-quarter and full-year results for 2024, along with annual guidance for 2025, indicating ongoing financial goals and growth strategies [3] Company Overview - Gildan is a leading manufacturer of everyday basic apparel, including activewear, underwear, and socks, marketed under various brands such as 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][6]

Core Insights - Gildan Activewear Inc. reported record revenue of $3,271 million for the full year 2024, reflecting a 2% increase year over year, and a 10% increase in dividends for 2025 [2][10][23]. Financial Performance - Fourth quarter net sales reached $822 million, a 5% increase from the previous year, with activewear sales up 11% to $714 million [3][30]. - Gross profit for the fourth quarter was $253 million, representing 30.8% of sales, an improvement from 30.2% in the prior year [4][30]. - SG&A expenses decreased to $78 million from $88 million year over year, reflecting a reduction in costs related to proxy contests and leadership changes [5][30]. - Operating income for the fourth quarter was $179 million, or 21.8% of net sales, with adjusted operating income at $175 million, up 160 basis points from the prior year [6][30]. - The company generated cash flow from operations of $211 million in Q4 and $501 million for the full year, with free cash flow of $208 million in Q4 and $389 million for the full year [7][30]. Market Dynamics - International sales increased by 20% year over year, driven by higher sell-through in certain markets and inventory replenishment by distributors [3][10]. - The Hosiery and underwear category saw a 23% decline in net sales, primarily due to the phase-out of the Under Armour business, although excluding this impact, sales were up in high single digits [3][10]. Strategic Initiatives - The company continues to focus on its Gildan Sustainable Growth (GSG) strategy, enhancing its competitive advantage as a low-cost, large-scale, vertically integrated sustainable manufacturer [2][17]. - Gildan aims for mid-single digit net sales growth and mid-teen adjusted diluted EPS growth over the next three years [17][21]. Shareholder Returns - The company returned $246 million to shareholders in Q4 and $889 million for the full year through dividends and share repurchases [7][15]. - A 10% increase in the quarterly dividend was announced, with a cash dividend of $0.226 per share payable on April 7, 2025 [23][21]. Leadership Changes - Gildan announced executive leadership changes, including the appointment of Chuck Ward as EVP and COO effective March 1, 2025, and Luca Barile as CFO [20][28].

Core Viewpoint - Gildan Activewear Inc. is set to release its fourth-quarter 2024 results, with expectations of revenue growth and stable earnings per share, driven by strategic initiatives and market demand [1][3][5]. Group 1: Financial Expectations - The Zacks Consensus Estimate for revenues is $793.5 million, reflecting a 1.4% increase from the previous year [1]. - The consensus estimate for earnings per share is stable at 80 cents, indicating a 6.7% increase from the year-ago period [1]. - Gildan has a trailing four-quarter earnings surprise average of 5.4% [1]. Group 2: Strategic Initiatives - Gildan's Sustainable Growth Strategy focuses on capacity expansion, innovation, and ESG initiatives, which are expected to enhance competitive strength and profitability [3]. - The new manufacturing complex in Bangladesh is projected to reach a 75% exit capacity rate by year-end, improving supply chain efficiencies [4]. - Ongoing modernization of yarn operations in the U.S. is driving operational improvements, likely benefiting the upcoming quarter [4]. Group 3: Market Dynamics - The company is expected to benefit from lower raw material and manufacturing input costs, which should enhance margins [5]. - The Activewear segment is gaining momentum due to market share expansion and strong demand for new soft cotton technology products [5]. - Increased international sales, particularly in Europe, are anticipated to positively impact revenue, driven by inventory replenishment and improved distribution capabilities [5]. Group 4: Management Outlook - Management has refined its outlook, expecting low-single-digit revenue growth, with mid-single-digit growth anticipated when excluding the impact of the Under Armour sock license expiration [6]. - Adjusted operating margin is projected to be slightly above 21%, with positive POS trends expected to continue through the final quarter [6]. Group 5: Stock Performance and Valuation - Gildan's stock has increased by 47.1% over the past year, outperforming the broader industry decline of 2.9% and the Consumer Discretionary sector's growth of 15.7% [8]. - The stock is trading at a forward 12-month price-to-earnings ratio of 14.81x, below its five-year high of 15.82x and the industry's average of 22.45x, indicating attractive valuation for investors [10].

Core Insights - Gildan Activewear (GIL) is currently more attractive to value investors compared to Kontoor Brands (KTB) based on various financial metrics and rankings [1][3][7] Valuation Metrics - GIL has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to KTB, which has a Zacks Rank of 3 (Hold) [3] - GIL's forward P/E ratio is 15.52, while KTB's forward P/E ratio is 16.73, suggesting GIL is relatively undervalued [5] - The PEG ratio for GIL is 1.72, compared to KTB's PEG ratio of 2.09, indicating GIL's expected earnings growth is more favorable relative to its valuation [5] - GIL's P/B ratio is 5.18, significantly lower than KTB's P/B ratio of 13.63, further supporting GIL's valuation attractiveness [6] Value Grades - GIL has a Value grade of B, while KTB has a Value grade of C, reflecting GIL's stronger overall valuation metrics [6]

MONTREAL, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL; TSX and NYSE) will report its 2024 fourth quarter and full year results on Wednesday, February 19th, 2025. A press release will be issued before markets open, and a conference call is scheduled on that same day at 8:30 AM ET to discuss the Company's results. The conference call can be accessed by dialing (800) 715-9871 (Canada & U.S.) or (646) 307-1963 (international) and entering passcode 3105768#. A replay will be available for 7 day ...

MONTREAL, Feb. 05, 2025 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL; TSX and NYSE) will report its 2024 fourth quarter and full year results on Wednesday, February 19th, 2025. A press release will be issued before markets open, and a conference call is scheduled on that same day at 8:30 AM ET to discuss the Company’s results. The conference call can be accessed by dialing (800) 715-9871 (Canada & U.S.) or (646) 307-1963 (international) and entering passcode 3105768#. A replay will be available for 7 day ...