Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Company Overview - Kontoor Brands (KTB) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2] Group 2: Earnings Growth - Kontoor's historical EPS growth rate is 7.8%, but the projected EPS growth for this year is 12.5%, significantly outperforming the industry average of 1.7% [4] Group 3: Asset Utilization - Kontoor's asset utilization ratio (sales-to-total-assets ratio) is 1.27, indicating that the company generates $1.27 in sales for every dollar in assets, which is higher than the industry average of 1.16 [5] Group 4: Sales Growth - The company's sales are expected to grow by 19.3% this year, contrasting sharply with the industry average of 0% [6] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Kontoor, with the Zacks Consensus Estimate for the current year increasing by 0.8% over the past month [7] Group 6: Investment Potential - Kontoor has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, suggesting it is a solid choice for growth investors [9]

Core Viewpoint - HanesBrands, Inc. will not provide future guidance due to its pending acquisition by Gildan, but it is on track to meet its previously provided full-year 2025 earnings guidance [1] Group 1: Financial Performance - For fiscal 2025, HanesBrands expects earnings of approximately $0.59 per share and adjusted earnings of approximately $0.66 per share from continuing operations [1] - Analysts polled expect the company to report earnings of $0.66 per share for the year, excluding special items [2]

Core Insights - Third Avenue Management's "Third Avenue Small-Cap Value Fund" reported a return of 7.18% in Q3 2025, underperforming the MSCI USA Small-Cap Value Index at 8.97% and the Russell 2000 Value Index at 12.60% [1] - The fund's performance was positively influenced by contributions from a diverse range of businesses [1] Company Analysis: UniFirst Corporation (NYSE:UNF) - UniFirst Corporation's stock experienced a one-month return of -2.75% and a 52-week decline of 22.44%, closing at $151.81 per share with a market capitalization of $2.75 billion on November 5, 2025 [2] - The fund noted that UniFirst is under pressure to demonstrate its value proposition as a standalone business after rejecting an acquisition offer from Cintas Corporation earlier in the year [3] - Despite acknowledging UniFirst's potential, the fund believes that certain AI stocks present greater upside potential and lower downside risk [3]

Core Viewpoint - The news release discusses various forward-looking statements related to the company's strategic direction, potential risks, and uncertainties that could impact future results [1] Group 1: Strategic Plans and Business Environment - The company is focused on implementing strategic plans, including supply chain restructuring and cost-saving initiatives [1] - The rapidly changing retail environment and consumer demand levels are highlighted as significant factors affecting the company's performance [1] Group 2: Geopolitical and Economic Risks - Ongoing geopolitical conflicts, such as the Russia-Ukraine conflict and Middle East tensions, are noted as potential risks impacting consumer spending and global supply chains [1] - Legal, regulatory, and economic risks related to international operations, including duties and tariffs, are emphasized as critical considerations for the company [1] Group 3: Merger and Acquisition Considerations - The company is involved in a merger agreement with Gildan, which may face delays or challenges in closing due to stockholder and regulatory approvals [1] - There are concerns regarding the realization of expected benefits or synergies from the merger, which may take longer or be more costly than anticipated [1]

Core Insights - Gildan Activewear's Q3 earnings exceeded expectations, with adjusted per-share earnings at $1, surpassing analysts' estimates of $0.98 [1] - The company reported a 2.2% year-on-year growth in Q3 sales, reaching $911 million, driven by a 5.4% increase in the activewear segment [2] - Despite the sales increase, net earnings declined from $131.5 million in Q3 2024 to $120.2 million in Q3 2025 [3] Sales Performance - Activewear sales contributed positively with a 5.4% year-on-year increase due to a favorable product mix and higher net prices [2] - Hosiery and underwear sales experienced a significant decline, dropping over 22% year-on-year to $80 million, attributed to weak demand and unfavorable product mix [2] Acquisition Plans - The company plans to acquire HanesBrands for $2.2 billion in cash and stock, expected to close in late 2025 or early 2026 [4] - The CFO expressed confidence in the acquisition as a beneficial path forward for Gildan [4][5] Financial Guidance - Gildan adjusted its guidance for the remainder of 2025, raising its projected adjusted operating margin increase from 50 basis points to 70 basis points [6] - The company expects capital expenditures to be 4% of sales, down from the previously projected 5% [6] Supply Chain Considerations - Companies are hesitant to shift their supply chains to Gildan's vertical factories due to tariff-related uncertainties [7] - The CEO noted that supply chain adjustments should not be knee-jerk reactions, emphasizing the potential for further optimization and exploration of new product categories [8]

Group 1 - Wipro Limited has signed a multi-year strategic agreement with Hanesbrands Inc. to transform its IT infrastructure and cybersecurity operations using an AI-first approach [1][2] - The agreement is part of HanesBrands' IT 2.0 transformation initiative, which aims to implement a unified, AI-led managed services model [2][3] - Wipro will enhance HanesBrands' security by enabling AI-powered predictive and preventive operations, automating security workflows, and improving regulatory compliance [3] Group 2 - Wipro operates as an IT, consulting, and business process services company globally, with segments in IT Services and IT Products [4] - Hanesbrands Inc. designs, manufactures, sources, and sells a variety of innerwear apparel across multiple regions including the Americas, Europe, and Asia Pacific [4]

Core Insights - The article discusses reliable dividend stocks, emphasizing that companies with consistent dividend growth are often financially stable and less volatile than the broader market [1][2] - The S&P 500 Dividend Aristocrats Index has returned 10.68% annually since 2005, outperforming the S&P 500's 10.05% return, while also exhibiting lower volatility [2] - Companies with high dividend yields may face greater risks during downturns, whereas dividend growth stocks have shown resilience and higher yields on cost over time [3] Dividend Growth Stocks - The article identifies several top dividend growth stocks, highlighting their average annual dividend growth rates over the past five years [4][6] Levi Strauss & Co. (NYSE:LEVI) - Levi Strauss has achieved a 5-year dividend growth rate of 11.32% and is a leader in the denim market [8][9] - BTIG initiated coverage with a Buy rating and a price target of $27, citing strong brand performance and gross profit margins of 61.38% [10] - The company distributed $151 million to investors, a 118% increase year-over-year, with a quarterly dividend of $0.14 per share and a yield of 2.77% [12] Essent Group Ltd. (NYSE:ESNT) - Essent Group has a 5-year dividend growth rate of 13.94% and plays a crucial role in the US housing finance system [13][16] - Keefe Bruyette raised the price target from $67 to $71 while maintaining a Market Perform rating [14] - The company has consistently raised dividends for five years, with a quarterly payout of $0.31 per share and a yield of 2.04% [16] Patrick Industries, Inc. (NASDAQ:PATK) - Patrick Industries boasts a 5-year dividend growth rate of 19.14% and supplies components for various industries [17][19] - Truist raised the price target from $105 to $114 while maintaining a Buy rating [18] - The company returned $55 million to shareholders in FY24, with quarterly dividends increasing from $0.25 to $0.40 per share, yielding 1.59% [19]

Core Viewpoint - Lakeland Industries (LAKE) is recognized as a strong buy despite having low ratings for value and growth, with a focus on manufacturing safety garments for various protective needs [1] Company Overview - Lakeland Industries, Inc. specializes in manufacturing and selling safety garments and accessories for industrial and public protective clothing markets, operating in both domestic and international segments [2] - The product range includes disposable protective clothing, chemical protective clothing, fire protective gear, and other safety garments [2] Earnings Performance - The company has missed the Zacks Consensus Estimate in three of the last four quarters, but recently reported an EPS of $0.36, exceeding the estimate of a loss of $0.04, resulting in a 1000% positive earnings surprise [4] - The average positive surprise over the last four quarters is 106% [4] Earnings Estimates Revisions - Earnings estimates for Lakeland Industries have been revised upwards, with the full year 2025 estimate increasing from $0.18 to $0.50 and 2026 from $1.23 to $1.28 over the last 60 days [5] Growth Projections - Analysts project revenue of $213 million for the current fiscal year, indicating a 27% growth, with expectations of $240 million next fiscal year, reflecting a 12.7% sales growth [6] Valuation Metrics - The company has a price to book ratio of 1.06x, suggesting investors are paying a slight premium over the asset cost, while the forward PE ratio is 32x, which is considered high but justified by expected growth [7] - The price to sales ratio stands at 0.82x, indicating the market may not fully recognize the company's sales performance, partly due to negative operating margins in recent quarters [7]

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]

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 favorable product mix and higher net prices [10] - Adjusted operating margins improved to 23.2%, reflecting an 80 basis point increase year-over-year [12] - Record adjusted diluted EPS of $1.00 was achieved, marking a 17.6% increase compared to the same period last year [5][14] Business Line Data and Key Metrics Changes - Sales in the hosiery underwear category decreased by 22% year-over-year, attributed to shipment timing shifts 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 AllPro and Champion, which are expected to drive future growth [6][10] Market Data and Key Metrics Changes - International market sales declined by $4 million, or 6.1% year-over-year, primarily due to ongoing demand softness [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, emphasizing operational agility and innovation [16] - Plans for the integration of the proposed acquisition of HanesBrands are underway, with expected run-rate synergies of at least $200 million [8] - The company aims to capitalize on its largest innovation pipeline in history, with more product launches planned for 2025 and 2026 [16] 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][18] - The outlook for 2025 includes revenue growth in the mid-single digits and an increase in adjusted operating margins by approximately 70 basis points [17] - Management noted that the market remains stable, with expectations for growth in the innerwear category in Q4 [23][45] Other Important Information - The company announced a private placement offering of $1.2 billion in senior unsecured notes to fund the proposed acquisition of HanesBrands [14] - Operating cash flow for the first nine months of 2025 was $270 million, with free cash flow guidance updated to approximately $400 million [15][17] Q&A Session Summary Question: Can you talk about 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 [22] - They expect a return to growth in Q4, with a stable market outlook [23][24] Question: What is driving the change in free cash flow guidance? - The decrease in free cash flow guidance is attributed to transaction costs related to the HanesBrands acquisition and timing of working capital [28] Question: How is the fleece business trending? - The fleece business is performing well, with sales meeting expectations as the season progresses [37] Question: What is the competitive landscape like? - Management indicated that the competitive landscape remains stable, with no significant changes observed in recent quarters [97]