Gildan Activewear Inc. (NYSE: GIL ) released 3Q24 earnings , with MSD on its more important segment, and LSD growth aggregate (driven down by discontinued business). The company's margins continue to expand thanks to raw materials onLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, ...

Have you been paying attention to shares of Gildan Activewear (GIL) ? Shares have been on the move with the stock up 4.6% over the past month. The stock hit a new 52-week high of $49.64 in the previous session. Gildan Activewear has gained 47.9% since the start of the year compared to the 5.5% move for the Zacks Consumer Discretionary sector and the -18.4% return for the Zacks Textile - Apparel industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn ...

Core Insights - Gildan Activewear reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and up from $0.74 per share a year ago, representing an earnings surprise of 1.19% [1] - The company achieved revenues of $891.1 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.01% and increasing from $869.9 million year-over-year [2] - Gildan's stock has increased approximately 46.3% year-to-date, significantly outperforming the S&P 500's gain of 21.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.82 on revenues of $800.35 million, and for the current fiscal year, it is $2.93 on revenues of $3.24 billion [7] - The estimate revisions trend for Gildan is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Textile - Apparel industry, to which Gildan belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Gildan's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Sales Performance - For the three and nine months ended September 29, 2024, Gildan reported that Activewear sales accounted for 83% of total net sales, while Hosiery and underwear sales accounted for 17%[19]. - Q3 2024 net sales reached $891.1 million, an increase from $869.9 million in Q3 2023, reflecting a year-over-year growth of approximately 2.5%[54]. - Net sales for Q3 2024 reached $891.1 million, a 2.4% increase from $869.9 million in Q3 2023[65]. - Activewear sales rose by $44 million (5.9%) for the three months and $93 million (4.6%) for the nine months, driven by increased shipments and positive point-of-sale (POS) performance[68]. - International sales increased by 20.4% for the three months and 9.2% for the nine months, attributed to distributor inventory replenishment and positive market response to new products[68]. - The Hosiery and underwear category saw a sales decline of $22.7 million (18.1%) for the three months, primarily due to the phase-out of the Under Armour business[68]. Financial Performance - Net earnings for Q3 2024 were $131.5 million, compared to $127.4 million in Q3 2023, representing a year-over-year increase of about 2.6%[54]. - Gross profit for Q3 2024 was $277.6 million, reflecting a 16.1% increase compared to $239.2 million in the same quarter last year[65]. - Operating income for Q3 2024 was $192.9 million, a 24.5% increase from $155.0 million in Q3 2023[65]. - Basic EPS for Q3 2024 was $0.82, up 12.3% from $0.73 in Q3 2023[65]. - The company’s net earnings for the three months ended September 29, 2024, were $131.5 million, a slight increase from $127.4 million year-over-year, while net earnings for the nine months decreased to $268.5 million from $380.3 million, a decline of 29.4%[92]. - Adjusted net earnings for the three months ended September 29, 2024, were $137.8 million, an increase of 6.5% from $129.4 million year-over-year[92]. - Adjusted net earnings for the nine months ended September 29, 2024, reached $361.5 million, up from $323.4 million in the prior year, representing an increase of 11.8%[201]. - Adjusted diluted EPS for the nine months ended September 29, 2024, was $2.18, compared to $1.82 in the prior year, marking a 19.8% increase[201]. Manufacturing and Operations - The company is expanding manufacturing capacity in Bangladesh, with a significant multi-plant manufacturing complex expected to enhance geographic diversification and support sales growth[26]. - The construction of the first textile and sewing complex in Bangladesh is substantially completed, with operations ramping up through 2024[26]. - Gildan's primary manufacturing operations include yarn-spinning facilities located in the United States, while textile, sewing, and sock manufacturing operations are situated in Central America, the Caribbean, and Asia[25]. - The company emphasizes a vertically integrated manufacturing process, controlling all aspects from yarn production to finished garments, which differentiates it from competitors[17]. - The company is expanding its yarn-spinning capabilities through the acquisition and modernization of Frontier Yarns[42]. Capital and Investments - The company has made significant capital investments in its manufacturing facilities to maintain production efficiency and product quality[16]. - Projected capital expenditures are planned to be close to 5% of net sales over the next three years[129]. - The company entered into a new $300 million term loan during the third quarter, contributing to higher interest expenses[85]. Debt and Liquidity - Total assets increased by $220.3 million to $3,735.2 million as of September 29, 2024, a 6.3% increase from $3,514.9 million at the end of 2023[65]. - Net debt rose to $1,506.9 million, a 51.7% increase from $993.5 million at the end of 2023[65]. - Long-term debt increased to $1,179.0 million as of September 29, 2024, up by $494 million from $685.0 million at the end of 2023[107]. - The company's long-term debt as of September 29, 2024, is $1,479.0 million, an increase from $985.0 million as of December 31, 2023[131]. - The net debt leverage ratio is 1.9 times as of September 29, 2024, compared to 1.5 times at December 31, 2023, remaining within the company's target range[137]. Shareholder Returns - The Board of Directors declared a cash dividend of $0.205 per share, totaling an expected payment of $32 million, to be paid on December 16, 2024[149]. - The Company repurchased a total of 13,361,096 common shares for cancellation at a total cost of $547 million during the nine months ended September 29, 2024[155]. - The total cash outlay for share repurchases in the first nine months of fiscal 2024 was $541 million, compared to $190 million in the first nine months of 2023[156]. - The Company received approval to renew its normal course issuer bid (NCIB) program to purchase up to 16,106,155 common shares, representing approximately 10% of the public float, until August 8, 2025[153]. - The Company’s dividend payout policy is subject to the discretion of the Board of Directors and is dependent on operating performance and financial results[151]. Risks and Challenges - The company relies on a small number of significant customers, which poses a risk if those customers do not commit to minimum quantity purchases[11]. - Gildan's financial performance is subject to various risks, including fluctuations in raw material prices and changes in consumer preferences[11]. - Gildan's forward-looking statements regarding future performance are subject to uncertainties and may differ materially from actual results[9]. - The company does not expect ongoing legal proceedings to materially affect its financial position or results of operations[161]. ESG and Sustainability - Gildan's products are marketed under various brands, including Gildan®, American Apparel®, and Comfort Colors®, with a focus on socially responsible production practices[18]. - The Gildan Sustainable Growth strategy focuses on capacity expansion, innovation, and ESG, aiming for long-term revenue growth and profitability[41]. - Gildan's ESG strategy includes initiatives to reduce carbon footprint and water intensity, with a commitment to investing in workforce diversity and inclusion[44].

Core Insights - Gildan Activewear reported record third quarter net sales of $891 million, reflecting a 2.4% increase year-over-year, with a notable 6% growth in Activewear sales [1][3][28] - The company generated a gross profit of $278 million, representing a gross margin of 31.2%, an improvement of 370 basis points compared to the previous year [4][26] - Adjusted diluted EPS for the quarter was $0.85, up 15% from $0.74 in the prior year, while GAAP diluted EPS increased by 12% to $0.82 [7][26] - Gildan returned a record $404 million to shareholders through dividends and share repurchases during the quarter [1][8] Financial Performance - Operating income for Q3 2024 was $193 million, or 21.7% of net sales, compared to $155 million, or 17.8% of net sales in the same period last year [6][26] - SG&A expenses were $84 million, with adjusted SG&A expenses down 5% to $78 million, reflecting a positive impact from a jobs credit introduced in Barbados [5][26] - Cash flow from operations totaled $178 million, leading to a free cash flow of $149 million after capital expenditures of $30 million [8][26] Market Dynamics - Activewear sales were driven by higher sales volumes and positive point-of-sale (POS) trends across North America, while international sales increased by 20% year-over-year [3][28] - The Hosiery and underwear segment saw a decline of 18% in sales, primarily due to the phase-out of the Under Armour business [3][28] - The company continues to gain market share in key growth categories, aided by new product innovations [2][3] 2024 Guidance - Gildan expects full-year revenue growth to be in the low-single digits, slightly improved from previous guidance of flat to low-single digits [15][16] - Adjusted operating margin is anticipated to be slightly above 21%, with adjusted diluted EPS projected in the range of $2.97 to $3.02, reflecting a year-over-year increase of 15.5% to 17.5% [15][16] - Free cash flow is expected to exceed 2023 levels, driven by increased profitability and lower capital expenditures [15][16] ESG Recognition - Gildan was recognized as one of Canada's Most Responsible Companies by Newsweek, ranking 14th overall and first in the Retail and Consumer Goods industry [17]

MONTREAL, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL; TSX and NYSE) will report its 2024 third quarter results on Thursday, October 31st, 2024. 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 7966565#. A replay will be available for 7 days starting at 12: ...

Have you been paying attention to shares of Gildan Activewear (GIL) ? Shares have been on the move with the stock up 4.2% over the past month. The stock hit a new 52-week high of $47.76 in the previous session. Gildan Activewear has gained 43.6% since the start of the year compared to the 5.1% move for the Zacks Consumer Discretionary sector and the -17.8% return for the Zacks Textile - Apparel industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it ha ...

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective metrics for momentum, addressing the challenges in defining momentum [2] Group 2: Gildan Activewear (GIL) Performance - Gildan Activewear currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for performance [3][4] - Over the past week, GIL shares increased by 0.26%, while the Zacks Textile - Apparel industry declined by 1.1% [6] - In the last month, GIL's price rose by 5.91%, outperforming the industry's 0.73% [6] - GIL shares have risen by 21% over the past quarter and 62.88% over the last year, significantly outperforming the S&P 500's gains of 4.49% and 34.55%, respectively [7] Group 3: Trading Volume and Earnings Outlook - GIL's average 20-day trading volume is 488,660 shares, which serves as a bullish indicator when combined with rising stock prices [8] - Recent earnings estimate revisions show one upward revision for the current fiscal year, increasing the consensus estimate from $2.92 to $2.93 [10] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions noted [10]

Investors interested in stocks from the Textile - Apparel sector have probably already heard of Gildan Activewear (GIL) and Lululemon (LULU) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimat ...

MONTREAL, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL: TSX and NYSE) announces today that Glenn J. Chamandy, President & Chief Executive Officer and Rhodri J. Harries, Executive Vice-President, Chief Financial and Administrative Officer will participate in a fireside chat and one-on-one meetings with investors at the 28th Annual Scotiabank Back to School Conference in Toronto on Wednesday, September 18, 2024. About Gildan Gildan is a leading manufacturer of everyday basic apparel. The Com ...