Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Gildan Activewear Inc: Despite the Proxy Fight, They Keep Winning with Cost Leadership & Market Share Gains – What’s the Impact, Outlook & its 5 Key Competitive & Strategic Levers?
Gildan Activewear's Q3 2024 results reflect disciplined execution under the Gildan Sustainable Growth (GSG) strategy, delivering record third-quarter revenues of $891 million (+2.4% YoY) and high-single-digit growth when adjusted for the phased-out Under Armour business. Activewear, the company’s core segment representing 88% of revenue, grew 6% YoY, fueled by market share gains, volume growth, and international expansion (+20% YoY) driven by efficiencies in Europe and increased production in Bangladesh. Gross margins expanded 370 basis points to 31.2%, with adjusted operating margins climbing to 22.4% (+430 basis points YoY), reflecting cost discipline, favorable input costs, and operational leverage. Adjusted EPS of $0.85 grew 15% YoY, meeting expectations, while GAAP EPS of $0.82 missed slightly due to cost dynamics. Strategic advantages include a 25% cost benefit from the Bangladesh facility, innovation pipelines like soft cotton technology, and leadership in ESG practices, highlighted by Newsweek recognition. Management reaffirmed guidance for adjusted EPS growth of 16% YoY in 2024 and mid-teens growth through 2027. However, softness in hosiery and underwear (-18% YoY) and broader apparel markets present near-term headwinds. Can Gildan leverage its cost leadership and market share gains to mitigate category-specific challenges and sustain long-term growth momentum?
