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 ...

Fadyukhin/E+ via Getty Images Gildan Activewear Inc. (NYSE:GIL) (TSX:GIL:CA) stock is awarded a Buy rating. GIL's second quarter bottom line expanded significantly by +17.5% YoY, which was equivalent to a +2.3% beat. The stock is undervalued based on an assessment of its forward P/E multiple and its intermediate term earnings outlook. I wrote about Gildan Activewear's operating profitability outlook in my prior November 19, 2023 write-up. This update evaluates GIL's financial performance for the second quar ...

Financial Data and Key Metrics Changes - The company reported Q2 sales of $862 million, an increase of $22 million or 3% year-over-year, at the higher end of guidance [7] - Adjusted earnings per share (EPS) were $0.74, a 17% increase from $0.63 in the prior year [11] - Gross margin improved to 30.4% from 25.8% in the prior year, a 460 basis point increase [9] - Operating margin was 22.7%, up 620 basis points compared to the prior year, exceeding the target range of 18% to 20% [10] Business Line Data and Key Metrics Changes - Activewear sales increased by $45 million or 6%, driven by positive point-of-sale (POS) trends and higher replenishment of fleece [8] - Hosiery and Underwear sales decreased by 16% due to the phase-out of the Under Armour business, but would have been up mid-single-digits excluding this impact [9] - International sales grew by 7% in the quarter [9] Market Data and Key Metrics Changes - The company experienced strong market share gains in fleece and ring spun products, key growth categories [8] - POS trends improved throughout the quarter, with June ending mid-single-digits [23] - International markets showed positive growth, particularly in Continental Europe [23] Company Strategy and Development Direction - The company is focused on a sustainable growth strategy with three pillars: capacity growth, innovation, and ESG [5] - The ramp-up of the new manufacturing complex in Bangladesh is on track, expected to reach 75% capacity by year-end [13] - The company aims for mid-single-digit revenue growth and mid-teen adjusted diluted EPS growth from 2025 to 2027 [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a mixed global macroeconomic backdrop but reiterated confidence in the company's execution of its GSG strategy [15] - The company expects revenue growth for 2024 to be flat to low-single-digits, with adjusted operating margins slightly above the high end of the target range [15] - Management expressed optimism about market share gains and the overall strength of the business despite challenges [44] Other Important Information - The company resumed share repurchases, returning $182 million to shareholders in Q2 [12] - A new NCIB program was approved to repurchase up to 10% of the company's public float over the next 12 months [12] - The adjusted effective income tax rate for the quarter was 27%, significantly higher than the previous year's 4.8% [11] Q&A Session Summary Question: Strongest and weakest POS trends during the quarter - Management noted improving POS trends, particularly in fleece and ring spun categories, with overall market down slightly [22][23] Question: Competitive landscape impact on pricing - Management indicated that while there was initial price pressure due to competitor inventory liquidation, the situation has stabilized [24] Question: Clarification on fleece category performance - Management clarified that while the overall market was down, Gildan gained market share in fleece, with strong sales and a large order book [26][27] Question: Current capacity utilization in Bangladesh - Management confirmed that the ramp-up in Bangladesh is on track, with expectations to reach 75% capacity by year-end [28][29] Question: Impact of civil unrest on operations - Management stated that civil unrest had minimal impact on operations, and the business is running as usual [29] Question: Sustainable level of SG&A - Management expects SG&A to be in the 9% to 9.5% range moving forward, with potential for further leverage [30] Question: Drivers of gross margin expansion - Management attributed gross margin expansion to improved raw material costs and manufacturing efficiencies [32] Question: Transition to soft cotton impact - Management indicated that the transition to soft cotton has been well received, with positive POS trends and no price changes [34]

Gildan Activewear (GIL) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2.78%. A quarter ago, it was expected that this apparel maker would post earnings of $0.52 per share when it actually produced earnings of $0.59, delivering a surprise of 13.46%. Over the last four quarters, the ...