Gildan Activewear Stock Gains 44.8% in a Year: Time to Hold or Avoid?

Company Performance - Gildan Activewear Inc. (GIL) has experienced a significant stock price increase of 44.8% over the past year, outperforming the Consumer Discretionary sector and the S&P 500, which rose by 12.6% and 9.7% respectively [1][2] - The stock is currently trading at $46.94, which is 15.3% below its 52-week high of $55.39 but at a 45.2% premium to its 52-week low [3] - GIL has outperformed key competitors such as Duluth Holdings, GIII Apparel Group, and Crocs, which saw declines of 58.8%, 10.3%, and 27.6% respectively over the same period [3] Strategic Initiatives - The company is benefiting from its Sustainable Growth strategy, focusing on organic growth through capacity expansion, innovation, and ESG practices [2][6] - Gildan aims to expand its global production capacity and improve its cost structure, innovation, and product development processes [6][8] - The company is leveraging its competitive advantage as a low-cost, vertically integrated manufacturer to enhance revenue growth and profitability [8] Financial Outlook - For 2025, management expects net sales to grow in the mid-single digits year over year, with adjusted earnings projected between $3.38 and $3.58 per share, indicating a year-over-year increase of 13-19% [9][10] - The adjusted operating margin is anticipated to improve by 50 basis points, and free cash flow is expected to exceed $450 million [9] Valuation Metrics - GIL's forward 12-month price-to-earnings (P/E) multiple is 13.03X, higher than the industry average of 11.01X, but below its median level of 13.87 [11]