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].

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]