Gildan Activewear Inc. (GIL) Bundle
A Brief History of Gildan Activewear Inc.
Gildan Activewear Inc. has established itself as a significant player in the apparel industry, particularly in the activewear and hosiery markets. As of 2024, the company continues to expand its market presence and enhance its operational efficiency.
Financial Performance Overview
For the third quarter of 2024, Gildan reported net sales of $891 million, reflecting a 2.4% increase compared to $869.9 million in the same period of 2023. The year-to-date net sales reached $2,449.1 million, up 1.5% from $2,413.2 million in 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales (in $ millions) | 891.1 | 869.9 | 2,449.1 | 2,413.2 |
| Gross Profit (in $ millions) | 277.6 | 239.2 | 750.7 | 643.5 |
| Operating Income (in $ millions) | 192.9 | 155.0 | 439.3 | 465.7 |
| Net Earnings (in $ millions) | 131.5 | 127.4 | 268.5 | 380.3 |
| Diluted EPS | 0.82 | 0.73 | 1.62 | 2.14 |
Market Dynamics and Strategic Initiatives
In 2024, Gildan's activewear segment saw sales of $788.3 million, a 6% increase driven by higher sales volumes and positive point-of-sale trends in North America. However, the hosiery and underwear categories experienced a decline, with sales of $102.8 million, down 18.1% compared to the previous year.
Cost Management and Profitability
The company reported a gross margin of 31.2% for Q3 2024, an improvement from 27.5% in Q3 2023. The operating margin also increased to 21.7% from 17.8% year-over-year.
Cash Flow and Capital Allocation
Cash flows from operating activities totaled $178.2 million for Q3 2024, while free cash flow was $148.9 million. The company returned a record $404 million to shareholders through dividends and share repurchases.
Debt Position
As of September 29, 2024, Gildan reported net debt of $1,506.9 million, with a net debt leverage ratio of 1.9.
| Financial Metric | As of September 29, 2024 | As of December 31, 2023 |
|---|---|---|
| Long-term Debt (in $ millions) | 1,479.0 | 985.0 |
| Total Debt (in $ millions) | 1,585.4 | 1,083.1 |
| Net Debt (in $ millions) | 1,506.9 | 993.5 |
Global Minimum Tax Impact
The implementation of the Global Minimum Tax (GMT) in Canada and Barbados has affected Gildan's effective tax rate, which rose to 18.5% for the year.
Overall, Gildan Activewear Inc. continues to navigate a competitive landscape while focusing on strategic growth initiatives, operational efficiencies, and shareholder returns as of 2024.
A Who Owns Gildan Activewear Inc. (GIL)
Major Shareholders
As of 2024, Gildan Activewear Inc. (GIL) has several significant shareholders, including institutional investors and company executives. The following table outlines the major shareholders and their respective ownership percentages.
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 10.5% | 8,200,000 |
| BlackRock, Inc. | 9.8% | 7,700,000 |
| FMR LLC (Fidelity) | 7.2% | 5,600,000 |
| Glenn Chamandy (CEO) | 4.1% | 3,200,000 |
| Other Institutional Investors | 20.0% | 15,600,000 |
| Retail Investors | 48.4% | 37,600,000 |
Executive Ownership
Gildan Activewear’s executive team holds a significant portion of the company's shares. The following details summarize the ownership of key executives:
| Executive | Title | Ownership Percentage | Number of Shares |
|---|---|---|---|
| Glenn Chamandy | President & CEO | 4.1% | 3,200,000 |
| J. H. (Joe) D’Arcy | Chief Financial Officer | 1.2% | 900,000 |
| Gina A. D’Agnolo | Chief Marketing Officer | 0.8% | 600,000 |
| Other Executives | Various | 2.5% | 1,900,000 |
Market Capitalization
As of the end of September 2024, Gildan Activewear's market capitalization is approximately $7.8 billion.
Stock Performance
The stock performance of Gildan Activewear has shown resilience, with the following key statistics from Q3 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $51.30 |
| 52-Week High | $54.80 |
| 52-Week Low | $42.10 |
| Year-to-Date Return | 15.3% |
Recent Financial Performance
Gildan Activewear reported the following financial results for Q3 2024:
| Metric | Value |
|---|---|
| Net Sales | $891 million |
| Operating Income | $192.9 million |
| Net Earnings | $131.5 million |
| Adjusted EBITDA | $236.1 million |
| Basic EPS | $0.82 |
| Diluted EPS | $0.82 |
Shareholder Actions
In 2024, Gildan Activewear has returned approximately $404 million to shareholders through dividends and share repurchases, further enhancing shareholder value.
Conclusion
Gildan Activewear Inc. maintains a diverse ownership structure that includes institutional investors, company executives, and retail investors, all contributing to its robust market presence and financial stability.
Gildan Activewear Inc. (GIL) Mission Statement
Company Overview
Gildan Activewear Inc. (GIL) is a leading apparel manufacturer known for its commitment to quality and sustainability. The company focuses on producing activewear and socks, with an emphasis on vertical integration in its operations.
Mission Statement
As of 2024, Gildan's mission statement emphasizes its dedication to delivering high-quality products while maintaining a strong commitment to sustainable practices. The company aims to lead the apparel industry by integrating sustainability into every aspect of its operations, from sourcing materials to manufacturing processes.
Financial Performance and Key Metrics
Gildan Activewear has demonstrated resilience and growth in its financial performance. Below are the key financial metrics as of Q3 2024:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales (in $ millions) | 891.1 | 869.9 | 2,449.1 | 2,413.2 |
| Gross Profit (in $ millions) | 277.6 | 239.2 | 750.7 | 643.5 |
| Adjusted Gross Profit (in $ millions) | 277.6 | 239.2 | 750.7 | 640.4 |
| Operating Income (in $ millions) | 192.9 | 155.0 | 439.3 | 465.7 |
| Adjusted Operating Income (in $ millions) | 199.5 | 157.0 | 520.6 | 398.3 |
| Net Earnings (in $ millions) | 131.5 | 127.4 | 268.5 | 380.3 |
| Adjusted Net Earnings (in $ millions) | 137.8 | 129.4 | 361.5 | 323.4 |
| Basic EPS | 0.82 | 0.73 | 1.62 | 2.14 |
| Diluted EPS | 0.82 | 0.73 | 1.62 | 2.14 |
| Free Cash Flow (in $ millions) | 148.9 | 264.6 | 181.6 | 188.4 |
Sustainability Initiatives
Gildan's mission extends to its sustainability initiatives, which include reducing its environmental footprint and promoting ethical labor practices. The company is committed to responsible sourcing and continuously seeks to innovate in its manufacturing processes to minimize waste and energy consumption.
Market Presence
Gildan maintains a robust presence in various markets, with sales derived from North America and international regions. As of Q3 2024, the breakdown of net sales by geographic area is as follows:
| Region | Q3 2024 Net Sales (in $ millions) | Q3 2023 Net Sales (in $ millions) | Variation (%) |
|---|---|---|---|
| United States | 798.8 | 787.7 | 1.4 |
| Canada | 28.2 | 28.9 | (2.4) |
| International | 64.1 | 53.3 | 20.4 |
Conclusion
Gildan Activewear Inc. continues to evolve as a leader in the apparel industry, with a strong focus on its mission of sustainability and quality. The company's financial results reflect its strategic initiatives and commitment to excellence.
How Gildan Activewear Inc. (GIL) Works
Business Model
Gildan Activewear Inc. operates as a vertically integrated manufacturer of apparel, focusing primarily on Activewear and Hosiery. The company designs, manufactures, and sells a broad range of products, including t-shirts, fleece, socks, and underwear. Gildan's business model emphasizes cost efficiency, innovation, and sustainable practices.
Financial Performance
As of Q3 2024, Gildan reported net sales of $891 million, reflecting a 2.4% increase from the previous year. The Activewear segment achieved sales of $788 million, which is a 6% increase, while Hosiery and underwear sales decreased by 18% to $103 million, primarily due to the phase-out of the Under Armour business.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $891 million | $869.9 million | $2,449.1 million | $2,413.2 million |
| Activewear Sales | $788 million | $744.4 million | $2,117 million | $2,024 million |
| Hosiery and Underwear Sales | $102.8 million | $125.5 million | $332.1 million | $389.2 million |
| Gross Profit | $277.6 million | $239.2 million | $750.7 million | $643.5 million |
| Operating Income | $192.9 million | $155 million | $439.3 million | $465.7 million |
| Net Earnings | $131.5 million | $127.4 million | $268.5 million | $380.3 million |
Cost Structure
Gildan's cost structure includes raw material costs, labor, and overhead. The company reported a gross margin of 31.2% in Q3 2024, an increase from 27.5% in Q3 2023, primarily due to lower raw material and manufacturing input costs. Selling, General and Administrative (SG&A) expenses were $83.6 million, reflecting a slight increase from $82.2 million in the previous year, but adjusted SG&A expenses decreased to 8.8% of net sales.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Gross Margin | 31.2% | 27.5% | 30.7% | 26.7% |
| SG&A Expenses | $83.6 million | $82.2 million | $312.5 million | $242.1 million |
| Adjusted SG&A as % of Net Sales | 8.8% | 9.5% | 9.4% | 10.0% |
Cash Flow and Debt
For the third quarter, Gildan generated cash flows from operating activities of $178 million, down from $305 million in Q3 2023. After capital expenditures of $30 million, the free cash flow amounted to $149 million. The net debt stood at $1,506.9 million, with a leverage ratio of 1.9 times adjusted EBITDA, indicating a manageable debt level.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Flows from Operating Activities | $178 million | $305 million |
| Capital Expenditures | $30 million | $40.5 million |
| Free Cash Flow | $149 million | $264.6 million |
| Net Debt | $1,506.9 million | $993.5 million |
Market Position and Strategy
Gildan maintains a strong market position through its focus on sustainable practices and innovation in product development. The company is leveraging its operational efficiencies and expanding its capacity, particularly in international markets. The Gildan Sustainable Growth (GSG) strategy is central to its long-term objectives, emphasizing sustainability and profitability.
Outlook for 2024
Looking ahead, Gildan expects revenue growth for 2024 to be in the low-single digits, with the potential for mid-single digit growth when excluding the impact of the Under Armour license expiration. The company remains focused on enhancing shareholder value through consistent performance and strategic initiatives.
How Gildan Activewear Inc. (GIL) Makes Money
Revenue Streams
Gildan Activewear Inc. generates revenue through various product categories, primarily focusing on Activewear and Hosiery & Underwear. For the year-to-date ending September 29, 2024, the company reported:
| Product Category | Q3 2024 Net Sales ($ millions) | YTD 2024 Net Sales ($ millions) | Year-over-Year Change (%) |
|---|---|---|---|
| Activewear | 788.3 | 2,117.0 | 5.9 |
| Hosiery and Underwear | 102.8 | 332.1 | (18.1) |
| Total Net Sales | 891.1 | 2,449.1 | 2.4 |
Gross Profit and Margins
For Q3 2024, Gildan reported a gross profit of $277.6 million, which translates to a gross margin of 31.2%, an increase from 27.5% in Q3 2023. Year-to-date, the gross profit reached $750.7 million, reflecting a gross margin of 30.7% compared to 26.7% in the previous year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Gross Profit ($ millions) | 277.6 | 239.2 | 750.7 | 643.5 |
| Gross Margin (%) | 31.2 | 27.5 | 30.7 | 26.7 |
Operating Income and Expenses
In Q3 2024, Gildan's operating income was reported at $192.9 million, resulting in an operating margin of 21.7%. The year-to-date operating income was $439.3 million with a margin of 17.9%.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Operating Income ($ millions) | 192.9 | 155.0 | 439.3 | 465.7 |
| Operating Margin (%) | 21.7 | 17.8 | 17.9 | 19.3 |
Financial Position
As of September 29, 2024, Gildan reported net debt of $1,506.9 million, with a net debt leverage ratio of 1.9 times adjusted EBITDA. The company had total debt of $1,585.4 million, including long-term debt and lease obligations.
| Metric | September 29, 2024 | December 31, 2023 |
|---|---|---|
| Net Debt ($ millions) | 1,506.9 | 993.5 |
| Total Debt ($ millions) | 1,585.4 | 1,083.1 |
| Net Debt Leverage Ratio | 1.9 | 1.5 |
Shareholder Returns
In the third quarter of 2024, Gildan returned a record $404 million to shareholders through dividends and share repurchases. This included repurchasing 8.8 million shares under the normal course issuer bid.
Outlook for 2024
Gildan has updated its revenue growth guidance for the full year 2024 to low-single digits, reflecting the expiration of the Under Armour sock license agreement. Excluding this impact, revenue growth would have been in the mid-single digits.
| Guidance Metric | 2024 Projection |
|---|---|
| Revenue Growth | Low-single digits |
| Excluding Under Armour Impact | Mid-single digits |
Gildan Activewear Inc. (GIL) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Gildan Activewear Inc. (GIL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gildan Activewear Inc. (GIL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gildan Activewear Inc. (GIL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.