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]

Core Viewpoint - Wall Street is facing significant losses due to uncertainty surrounding the new U.S. administration's economic tariffs, which are anticipated to increase consumer prices and negatively impact spending and the overall U.S. economy [1] Group 1: Market Trends - Investors are adopting a defensive stance, focusing on products that provide stability and safety in a volatile market, leading to increased interest in dividend stocks [2] - Dividend stocks are recognized for their ability to provide consistent income, which is crucial for wealth creation when equity market returns are uncertain [2] Group 2: Investment Strategy - Selecting stocks with a history of dividend growth can lead to a healthier portfolio with better capital appreciation potential compared to merely high-yield dividend stocks [3] - Stocks with strong dividend growth histories are typically from mature companies, making them less vulnerable to market fluctuations and providing a hedge against economic and political uncertainties [4] Group 3: Stock Selection Criteria - Key criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [7] - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth [7] - Next 3-5 Year EPS Growth Rate greater than zero, suggesting expected earnings growth to sustain dividend payments [7] - Price/Cash Flow less than the industry average, indicating undervaluation [8] - 52-Week Price Change greater than the S&P 500, ensuring better performance over the past year [8] - Top Zacks Rank of 1 (Strong Buy) or 2 (Buy), indicating strong potential for outperformance [8] - Growth Score of B or better, which, when combined with a strong Zacks Rank, offers the best upside potential [9] Group 4: Featured Stocks - Tapestry, Inc. (TPR) has an estimated earnings growth rate of 14.4% for the fiscal year ending June 2025 and a Zacks Rank 1 with a Growth Score of A [10] - Gildan Activewear Inc. (GIL) has an estimated earnings growth rate of 16% for this year and a Zacks Rank 2 with a Growth Score of B [11] - Broadcom Inc. (AVGO) has an expected earnings growth rate of 35.5% and a Zacks Rank 2 with a Growth Score of A [12]

Core Insights - Gildan Activewear Inc. will participate in the 28th Annual CIBC Retail and Consumer Conference in Toronto on March 26, 2025, with key executives attending [1] 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 brands [2] - The company markets its products across North America, Europe, Asia Pacific, and Latin America under various owned brands, including Gildan, American Apparel, Comfort Colors, GOLDTOE, and Peds, as well as through an exclusive licensing agreement for Champion in the printwear channel [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 integrated into its long-term business strategy [3]

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].