Gildan Activewear (US:GIL) ZACKSยท2025-04-24 16:00Core 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].