Core Viewpoint - Gildan Activewear Inc. is considered one of the most undervalued Canadian stocks, with multiple analysts raising their price targets in anticipation of positive developments related to the Hanesbrands integration strategy and overall market positioning [1][2][3]. Group 1: Analyst Ratings and Price Targets - Scotiabank increased its price target for Gildan Activewear to $72 from $66 while maintaining an Outperform rating, reflecting confidence in the company's positioning within the apparel industry [1]. - TD Securities analyst raised the price target for Gildan Activewear to $77 from $74 with a Buy rating, emphasizing the importance of the Hanesbrands integration strategy for investor confidence [2]. - BMO Capital raised its price target for Gildan Activewear to $78 from $70 with an Outperform rating, highlighting the company's low-cost, vertically integrated manufacturing model as a driver for wholesale growth and market share capture [3]. Group 2: Company Overview - Gildan Activewear Inc. manufactures and sells a variety of apparel products, including activewear and hosiery under several brands such as Gildan, GoldToe, and All Pro [4].

Core Viewpoint - Gildan Activewear's stock experienced a significant price increase following a robust price target upgrade by UBS analyst Jay Sole, who raised the target nearly 38% to $110 per share from $80, maintaining a buy recommendation on the stock [2][4]. Group 1: Analyst Insights - The price target increase is attributed to Gildan's recent acquisition of Hanesbrands, which is expected to provide synergistic benefits and enhance Gildan's market presence [4][5]. - The acquisition is seen as a strategic move that allows Gildan to achieve a scope that it could not have reached independently, particularly through Hanesbrands's established retail presence [4]. Group 2: Financial Implications - Sole suggests that the potential divestment of Hanesbrands's Australia business could generate proceeds that may be used to reduce Gildan's debt and possibly reinstate share buybacks [5]. - Gildan's current market capitalization stands at $11 billion, with a gross margin of 31.43% and a dividend yield of 1.51% [6][7].

Core Insights - ABM has appointed Barry Hytinen to its Board of Directors, bringing extensive experience in corporate finance and strategic transformation [2][3][4] Company Overview - ABM is a leading provider of integrated facility, engineering, and infrastructure solutions, with over 100,000 team members delivering essential services [7] - The company serves various market sectors, including commercial real estate, aviation, education, and manufacturing, generating over $8 billion in annual revenue [8] Leadership Experience - Barry Hytinen currently serves as Executive Vice President and CFO of Iron Mountain, where he has driven the company's evolution into a diversified solutions-based business [3][4] - Hytinen has previously held significant roles at Hanesbrands and Tempur Sealy International, focusing on global growth initiatives and financial leadership [5][6] Strategic Vision - Hytinen expressed enthusiasm for joining ABM's Board, highlighting the company's scale, purpose, and commitment to innovation [4] - The Chairman of ABM's Board emphasized Hytinen's financial expertise and operational insight as valuable assets for the company's long-term strategy execution [6]

Core Insights - ABM has appointed Barry Hytinen to its Board of Directors, bringing extensive experience in corporate finance and strategic transformation [2][3][4] Company Overview - ABM is a leading provider of integrated facility, engineering, and infrastructure solutions, with over 100,000 team members delivering essential services [7][8] - The company serves various market sectors, including commercial real estate, aviation, education, and manufacturing, generating over $8 billion in annual revenue [8] Leadership Experience - Barry Hytinen currently serves as Executive Vice President and CFO of Iron Mountain, where he has driven the company's evolution into a diversified solutions-based business [3][4] - Hytinen has previously held significant roles at Hanesbrands and Tempur Sealy International, focusing on global growth initiatives and financial leadership [5][6] Strategic Importance - Hytinen's financial expertise and operational insight are expected to be invaluable as ABM continues to execute its long-term strategy [6]

Financial Data and Key Metrics Changes - The company reported third quarter sales of $911 million, a 2.2% year-over-year increase, aligning with previous guidance of low single-digit growth [10] - Activewear sales increased by 5.4%, driven by a favorable product mix and higher net prices [10] - Adjusted operating margins improved to 23.2%, reflecting an 80 basis point year-over-year increase, resulting in record adjusted diluted EPS of $1.00, up 17.6% from the previous year [5][15] Business Line Data and Key Metrics Changes - Sales in the hosiery underwear category decreased by 22% year-over-year, attributed to a timing shift of shipments and broader market weakness [11] - The Comfort Colors brand performed well, celebrating its 50th anniversary, and contributed to overall sales growth [7] - The company introduced new brands such as All Pro and Champion, which are expected to drive further growth [6] Market Data and Key Metrics Changes - International sales declined by $4 million, or 6.1% year-over-year, primarily due to ongoing demand softness across markets [11] - Sales to North American distributors remained solid, supported by sustained momentum from national account customers [10] Company Strategy and Development Direction - The company is focused on executing its Gildan Sustainable Growth (GSG) strategy, leveraging a large-scale, low-cost, vertically integrated manufacturing network [8] - The proposed acquisition of Hanesbrands is expected to close late this year or early 2026, with anticipated run-rate synergies of at least $200 million [8] - The company is capitalizing on its largest innovation pipeline in history, with more product launches planned for 2025 and 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite a fluid macroeconomic environment [5] - The outlook for 2025 includes revenue growth in the mid-single digits and an increase in adjusted operating margins by approximately 70 basis points [18] - Management noted that the market remains stable, with expectations for growth in the innerwear category in Q4 [24][46] Other Important Information - The company generated approximately $189 million in free cash flow in the first nine months of 2025, with $200 million generated in the third quarter [16] - The company ended the quarter with net debt of about $1.7 billion, maintaining a leverage ratio of 2x net debt to trailing twelve months Adjusted EBITDA [16] Q&A Session Summary Question: Can you discuss the weakness in the Underwear business and market share? - Management noted that the innerwear business faced delays in floor sets by large retailers and inventory management issues due to tariffs [23] - They expect a return to growth in Q4, with a stable market outlook [24] Question: What is driving the change in free cash flow guidance? - The change is attributed to transaction costs related to the Hanesbrands acquisition and timing issues with working capital [29] Question: How is the Fleece business trending with changing weather? - The Fleece business is performing well, with sales meeting expectations as the season progresses [38] Question: What is the competitive landscape like regarding tariffs? - Management indicated that there is uncertainty in the market, but they are well-positioned to optimize their supply chain and capitalize on opportunities [40] Question: Can you comment on inventory levels and tariff costs? - Inventory levels are slightly higher due to tariff costs, but the company is well-positioned for availability and control of working capital [81] Question: How will the Hanesbrands acquisition impact organic growth? - The company anticipates net sales to grow at a rate of 3%-5% CAGR over the next three years post-acquisition [85]

Gildan to Buy Underwear Maker Hanesbrands for $2.2 Billion. Hear the details on the Bloomberg Stock Movers report https://t.co/sAFS8j708T ...

Company Performance - Lululemon athletica inc. reported fourth-quarter fiscal 2024 revenues of $3.61 billion, a 13.6% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.58 billion [5] - The company's earnings per share (EPS) for the fourth quarter was $6.14, reflecting a 16.1% increase from the adjusted EPS of $5.29 in the prior-year quarter, and exceeding the Zacks Consensus Estimate of $5.85 [2] - The company has achieved a 19% revenue compound annual growth rate (CAGR) since 2021, with adjusted EPS growing at a 23% CAGR [3] Sales and Revenue Breakdown - Net revenues in the Americas grew 7% on a reported basis and 8% on a constant-dollar basis, while international revenues surged 38% (40% on a constant-dollar basis) [5] - Total comparable sales rose 3% year over year, with a 20% increase internationally [6][8] - Digital revenues contributed $1.8 billion, accounting for 50% of total revenues, with an 8% year-over-year improvement [8] Profitability Metrics - Gross profit increased 15% year over year to $2.2 billion, with a gross margin expansion of 100 basis points to 60.4% [9] - Operating income rose 14% year over year to $1 billion, with an operating margin of 28.9%, expanding 40 basis points [12] Future Outlook - For fiscal 2025, Lululemon anticipates net revenues of $11.15-$11.3 billion, indicating 5-7% year-over-year growth [23] - The company expects a gross margin decline of 60 basis points year over year due to fixed cost deleverage and foreign exchange headwinds [24] - Lululemon plans to open 40-50 net new company-operated stores in fiscal 2025, aiming for a 10% increase in square footage [15] Financial Position - As of the end of fiscal 2024, Lululemon had cash and cash equivalents of $2 billion and stockholders' equity of $4.3 billion [16] - The company repurchased 5.1 million shares for $1.6 billion in fiscal 2024, with $1.3 billion remaining under its current share repurchase authorization [17] Strategic Initiatives - Lululemon continues to implement its Power of Three X2 growth strategy, focusing on enhancing brand awareness and supporting international growth [3][25] - The company is entering new markets, including Italy and several countries through a franchise model, while optimizing existing store operations [14][15]