The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Gildan Activewear (GIL) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Gildan Activewear is a member of the Consumer Discretionary sector. This group includes 273 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The averag ...

Company Performance - Gildan Activewear's shares have increased by 51.6% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 15.6% increase and the Zacks Textile - Apparel industry's decline of 9.3% [1] - The stock reached a new 52-week high of $50.6 recently, with a 2% increase over the past month [1] Earnings and Revenue Forecast - For the current fiscal year, Gildan is projected to achieve earnings of $2.97 per share on revenues of $3.24 billion, reflecting a 15.56% increase in EPS and a 1.49% increase in revenues [3] - The next fiscal year is expected to see earnings of $3.38 per share on $3.4 billion in revenues, indicating a year-over-year change of 13.8% in EPS and 4.69% in revenues [3] Valuation Metrics - Gildan's current trading metrics include a P/E ratio of 16.9X for the current fiscal year EPS estimates, which is below the peer industry average of 20.5X [7] - The stock has a trailing cash flow basis P/E of 14.9X compared to the peer group's average of 9.4X, and a PEG ratio of 1.87 [7] Zacks Rank and Style Scores - Gildan holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The company has a Value Score of B, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of B [6][8] Industry Comparison - The Textile - Apparel industry is currently in the top 22% of all industries, indicating positive market conditions that could benefit Gildan and its peers [11] - Superior Group of Companies, a peer in the industry, has a Zacks Rank of 2 (Buy) and strong earnings performance, suggesting competitive dynamics within the sector [9][10]

Core Insights - Gildan Activewear Inc. celebrated its 40th anniversary and 25th anniversary of being listed on the NYSE, highlighting its long-term growth and commitment to sustainable practices [2][4]. Company Overview - Gildan is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, and socks, marketed under various brands including Gildan®, American Apparel®, and Comfort Colors® [5]. - The company operates large-scale, vertically integrated manufacturing facilities primarily located in Central America, the Caribbean, North America, and Bangladesh [6]. Business Model and Practices - Gildan distinguishes itself through a vertically integrated manufacturing model, being one of the largest domestic consumers of U.S. cotton, and emphasizes the importance of how products are made, focusing on worker safety, community support, and environmental initiatives [3][4]. - The company has a strong commitment to industry-leading labor, environmental, and governance practices, which are embedded in its comprehensive ESG program [6]. Leadership Perspective - Glenn J. Chamandy, President and CEO, expressed optimism for the future, emphasizing the company's commitment to sustainable growth and the positive impacts made in communities over the past four decades [4].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

MONTREAL, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL: TSX and NYSE) (“Gildan” or the “Company”) announced today that it has priced an inaugural offering of C$700 million aggregate principal amount of senior unsecured notes in two series (the “Notes”), consisting of C$500 million aggregate principal amount of 4.362% senior unsecured notes, Series 1, due 2029 (the “2029 Notes”) and C$200 million aggregate principal amount of 4.711% senior unsecured notes, Series 2, due 2031 (the “2031 Notes ...

Group 1 - Gildan Activewear Inc. reported 3Q24 earnings with a mid-single-digit (MSD) growth in its more important segment and a low-single-digit (LSD) aggregate growth, impacted by discontinued business [1] - The company's margins are expanding due to favorable raw material costs [1] Group 2 - The analysis emphasizes a long-only investment approach, focusing on operational aspects and long-term earnings potential rather than market-driven dynamics [1] - The investment strategy suggests that only a small fraction of companies should be considered for buying at any given time, with most recommendations being holds [1]

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 ...

Financial Data and Key Metrics Changes - Gildan reported record third quarter sales of $891 million, an increase of 2.4% year-over-year, with adjusted operating margins of 22.4%, up 430 basis points from the previous year [7][18] - Adjusted diluted EPS reached a record $0.85, reflecting a 15% increase compared to the prior year [8][20] - Gross margin improved to 31.2%, up from 27.5% in the prior year, primarily due to lower raw material and manufacturing input costs [18] Business Line Data and Key Metrics Changes - Activewear sales increased by $44 million or 6%, driven by higher sales volumes and positive point-of-sale (POS) trends across channels in North America [13][15] - Hosiery and Underwear category saw an 18% decline, primarily due to the phase-out of the Under Armour business; however, excluding this impact, sales would have increased by low double-digits [17][24] - International market sales rose by 20%, with significant growth in Europe and inventory replenishment by distributors [16] Market Data and Key Metrics Changes - The overall market for Gildan's products is expected to grow at a flat to low single-digit rate, while Gildan aims for mid-single-digit growth [33][34] - POS trends showed a slight decline in the overall market, but Gildan gained market share in key categories [31] Company Strategy and Development Direction - Gildan's growth strategy focuses on capacity expansion, innovation, and ESG initiatives, with ongoing modernization of yarn operations in the U.S. and ramping up of the Bangladesh facility [9][10][22] - The company plans to maintain capital expenditures at over 5% of sales annually and continue share repurchases within a net debt-to-adjusted EBITDA leverage framework of 1.5x to 2.5x [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit sales growth targets for 2025 to 2027, despite a mixed macroeconomic backdrop [10][23] - The company anticipates adjusted operating margins to slightly exceed 21% for the full year 2024, benefiting from a refundable jobs credit introduced by Barbados [24] Other Important Information - Gildan received recognition as one of Canada's most responsible companies, ranking 14th overall and first in the retail and consumer goods industry [22] - The company reported free cash flow of $149 million in Q3, with a strong balance sheet supporting capital allocation priorities [21] Q&A Session Summary Question: POS trends and fourth quarter outlook - Management noted that the market has been down low single-digits to mid-single-digits, but Gildan has been gaining share across categories, with positive POS trends for their soft cotton technology [31] Question: National accounts dynamics - Gildan's national account business has been performing well, with continued share gains despite a declining market [35] Question: Impact of industry consolidation - Management believes consolidation in the industry will benefit Gildan, as fewer distributors may lead to a more stable market [42] Question: Fleece performance and future growth - Fleece is expected to continue growing, with Gildan under-penetrated in the national account area, indicating significant growth potential [65] Question: Cotton prices and pricing strategy - Management indicated that cotton prices have decreased slightly, but inflation in other areas may keep pricing stable [53] Question: Bangladesh operations and civil unrest - Management expressed confidence in the stability of operations in Bangladesh, noting that the plants are fully functional and ramping up as planned [62][63]

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].