Gildan Reports Record Fourth Quarter Revenue and Adjusted Diluted EPS¹ and Initiates Guidance for 2025

Core Insights - Gildan Activewear Inc. reported record revenue of $3,271 million for the full year 2024, reflecting a 2% increase year over year, and a 10% increase in dividends for 2025 [2][10][23]. Financial Performance - Fourth quarter net sales reached $822 million, a 5% increase from the previous year, with activewear sales up 11% to $714 million [3][30]. - Gross profit for the fourth quarter was $253 million, representing 30.8% of sales, an improvement from 30.2% in the prior year [4][30]. - SG&A expenses decreased to $78 million from $88 million year over year, reflecting a reduction in costs related to proxy contests and leadership changes [5][30]. - Operating income for the fourth quarter was $179 million, or 21.8% of net sales, with adjusted operating income at $175 million, up 160 basis points from the prior year [6][30]. - The company generated cash flow from operations of $211 million in Q4 and $501 million for the full year, with free cash flow of $208 million in Q4 and $389 million for the full year [7][30]. Market Dynamics - International sales increased by 20% year over year, driven by higher sell-through in certain markets and inventory replenishment by distributors [3][10]. - The Hosiery and underwear category saw a 23% decline in net sales, primarily due to the phase-out of the Under Armour business, although excluding this impact, sales were up in high single digits [3][10]. Strategic Initiatives - The company continues to focus on its Gildan Sustainable Growth (GSG) strategy, enhancing its competitive advantage as a low-cost, large-scale, vertically integrated sustainable manufacturer [2][17]. - Gildan aims for mid-single digit net sales growth and mid-teen adjusted diluted EPS growth over the next three years [17][21]. Shareholder Returns - The company returned $246 million to shareholders in Q4 and $889 million for the full year through dividends and share repurchases [7][15]. - A 10% increase in the quarterly dividend was announced, with a cash dividend of $0.226 per share payable on April 7, 2025 [23][21]. Leadership Changes - Gildan announced executive leadership changes, including the appointment of Chuck Ward as EVP and COO effective March 1, 2025, and Luca Barile as CFO [20][28].