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].

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]