Why Gildan Activewear Shares Are Rising Today

Gildan Activewear, Inc. GIL shares are trading higher on Wednesday.

The company reported fourth-quarter adjusted earnings per share of 75 cents, beating the analyst consensus of 73 cents. Quarterly revenues of $782.7 million outpaced the street view of $764.48 million.

Net sales surged 9% year over year. Fourth quarter activewear sales were $644 million, up 8% year over year. The increase in Activewear sales was due to higher volumes, driven by POS as well as higher levels of customer replenishment than the prior year. 

Sales in the Hosiery and underwear category were up 11% to $139 million. The increase was mainly due to higher volumes, driven by a combination of better POS and the rollout of new programs in the mass retail channel. 

Gildan Activewear generated a gross profit of $237 million, or 30.2% of sales, versus $235 million, or 32.6%, in the prior year.

The company’s long-term debt as of December 31, 2023, stands at $985 million. Gildan exited the quarter with cash and equivalents worth $89.64 million.

Dividend Raised: The company approved a 10% increase in the amount of the current quarterly dividend and has declared a cash dividend of $0.205 per share, payable on April 8, 2024, to shareholders of record on March 13, 2024.

Outlook: Gildan sees FY24 revenue growth to be flat to up low-single digits.

The firm projects FY24 adjusted EPS of $2.92-$3.07 versus the $3.00 estimate.

Gildan expects an adjusted operating margin to be slightly above the high end of its 18% to 20% annual target range.

Price Action: GIL shares are trading higher by 3.31% to $34.99 on the last check Wednesday. 

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