Latest news with #Chamandy
Fashion Network
01-05-2025
- Business
- Fashion Network
Gildan beats estimates, maintains guidance amid uncertain trade
Gildan Activewear Inc. kept its full-year guidance unchanged in the first quarter, saying it expects its low-cost apparel business to withstand a feared economic slowdown fueled by a trade war with the U.S. The Montreal-based activewear manufacturer expects revenues to grow by mid-single digits in 2025 compared to a year ago. The decision to maintain the guidance reflects an 'understanding of global trade and geopolitical environments,' company management said during a call with analysts on Tuesday. Chief Executive Officer Glenn Chamandy said Gildan gets its competitive advantage from its vertical integration and low-cost manufacturing. He added that the company sources a significant amount of cotton and yarn from the US, protecting it to some extent from the 10% reciprocal tariffs on products sourced from outside of the country. 'I think we're well-positioned overall to continue our momentum and continue taking share,' Chamandy told analysts. Gildan earned an adjusted 59 cents per share in the first quarter, coming ahead of the 57 cents expected by analysts in a Bloomberg survey. The company reported $711.7 million in net sales for the quarter. It is sticking with its forecast at a time when an uncertain economic environment prompted some other North American companies like Lightspeed Commerce Inc. and General Motors Co. to withdraw or lower their expected earnings estimates. TD Cowen analyst Brian Morrison said Gildan is poised to gain market share and expand Central American capacity, which should improve investor confidence in the company maintaining its guidance over the next two years. 'Although the industry appears to be modestly slowing, Gildan's market-share gains appear to be accelerating,' Morrison wrote to clients on Wednesday. 'We believe tariffs impact the cost structure of peers more significantly than Gildan, in turn widening its cost advantage.' The results come nearly a year after Chamandy was reinstated to the helm following a lengthy battle against the board. Once he returned, he laid out a plan with Los Angeles-based investment firm Browning West LP to boost revenue, borrow money and accelerate share buybacks to boost the stock price. Shares have gained over 50% in the span between May 2024, when Chamandy was officially named as CEO, to a February peak of C$78.42. They reversed course in the wake of tariff worries and a broader market selloff and closed at C$59.25 in Toronto on Tuesday.
Fashion Network
01-05-2025
- Business
- Fashion Network
Gildan beats estimates, maintains guidance amid uncertain trade
Inc. kept its full-year guidance unchanged in the first quarter, saying it expects its low-cost apparel business to withstand a feared economic slowdown fueled by a trade war with the U.S. The Montreal-based activewear manufacturer expects revenues to grow by mid-single digits in 2025 compared to a year ago. The decision to maintain the guidance reflects an 'understanding of global trade and geopolitical environments,' company management said during a call with analysts on Tuesday. Chief Executive Officer Glenn Chamandy said Gildan gets its competitive advantage from its vertical integration and low-cost manufacturing. He added that the company sources a significant amount of cotton and yarn from the US, protecting it to some extent from the 10% reciprocal tariffs on products sourced from outside of the country. 'I think we're well-positioned overall to continue our momentum and continue taking share,' Chamandy told analysts. Gildan earned an adjusted 59 cents per share in the first quarter, coming ahead of the 57 cents expected by analysts in a Bloomberg survey. The company reported $711.7 million in net sales for the quarter. It is sticking with its forecast at a time when an uncertain economic environment prompted some other North American companies like Lightspeed Commerce Inc. and General Motors Co. to withdraw or lower their expected earnings estimates. TD Cowen analyst Brian Morrison said Gildan is poised to gain market share and expand Central American capacity, which should improve investor confidence in the company maintaining its guidance over the next two years. 'Although the industry appears to be modestly slowing, Gildan's market-share gains appear to be accelerating,' Morrison wrote to clients on Wednesday. 'We believe tariffs impact the cost structure of peers more significantly than Gildan, in turn widening its cost advantage.' The results come nearly a year after Chamandy was reinstated to the helm following a lengthy battle against the board. Once he returned, he laid out a plan with Los Angeles-based investment firm Browning West LP to boost revenue, borrow money and accelerate share buybacks to boost the stock price. Shares have gained over 50% in the span between May 2024, when Chamandy was officially named as CEO, to a February peak of C$78.42. They reversed course in the wake of tariff worries and a broader market selloff and closed at C$59.25 in Toronto on Tuesday.
Fashion Network
01-05-2025
- Business
- Fashion Network
Gildan beats estimates, maintains guidance amid uncertain trade
Inc. kept its full-year guidance unchanged in the first quarter, saying it expects its low-cost apparel business to withstand a feared economic slowdown fueled by a trade war with the U.S. The Montreal-based activewear manufacturer expects revenues to grow by mid-single digits in 2025 compared to a year ago. The decision to maintain the guidance reflects an 'understanding of global trade and geopolitical environments,' company management said during a call with analysts on Tuesday. Chief Executive Officer Glenn Chamandy said Gildan gets its competitive advantage from its vertical integration and low-cost manufacturing. He added that the company sources a significant amount of cotton and yarn from the US, protecting it to some extent from the 10% reciprocal tariffs on products sourced from outside of the country. 'I think we're well-positioned overall to continue our momentum and continue taking share,' Chamandy told analysts. Gildan earned an adjusted 59 cents per share in the first quarter, coming ahead of the 57 cents expected by analysts in a Bloomberg survey. The company reported $711.7 million in net sales for the quarter. It is sticking with its forecast at a time when an uncertain economic environment prompted some other North American companies like Lightspeed Commerce Inc. and General Motors Co. to withdraw or lower their expected earnings estimates. TD Cowen analyst Brian Morrison said Gildan is poised to gain market share and expand Central American capacity, which should improve investor confidence in the company maintaining its guidance over the next two years. 'Although the industry appears to be modestly slowing, Gildan's market-share gains appear to be accelerating,' Morrison wrote to clients on Wednesday. 'We believe tariffs impact the cost structure of peers more significantly than Gildan, in turn widening its cost advantage.' The results come nearly a year after Chamandy was reinstated to the helm following a lengthy battle against the board. Once he returned, he laid out a plan with Los Angeles-based investment firm Browning West LP to boost revenue, borrow money and accelerate share buybacks to boost the stock price. Shares have gained over 50% in the span between May 2024, when Chamandy was officially named as CEO, to a February peak of C$78.42. They reversed course in the wake of tariff worries and a broader market selloff and closed at C$59.25 in Toronto on Tuesday.
Yahoo
30-04-2025
- Business
- Yahoo
Gildan Activewear CEO touts 'very strong competitive advantage' on U.S. tariffs; stock surges
Gildan Activewear ( shares climbed over eight per cent in early trading on Wednesday, as investors responded to the Canadian t-shirt maker's confidence in the face of U.S. tariffs, and rising profit in the first quarter. The Montreal-based apparel maker, which keeps its book in U.S. dollars, saw net earnings for the three months ended March 30 rise to US$84.7 million, versus US$78.7 million a year earlier. At the same time, chief executive officer Glenn Chamandy says Gildan is 'well-positioned' from a tariff perspective. Gildan manufactures basic apparel like activewear, underwear, and socks at facilities primarily located in Central America, the Caribbean, North America, and Bangladesh. U.S. President Donald Trump's current slate of trade levies includes a minimum baseline tariff of 10 per cent on imports from about 90 nations. 'We have significant U.S. cotton and yarn content in our products, which should allow for significant tariff savings, since a 10 per cent reciprocal baseline tariff does not apply to the value of U.S. content-imported products, which puts us in a very strong competitive advantage,' Chamandy told analysts on a post-earnings conference call after markets closed on Tuesday. 'We're better-positioned than anybody in the market,' he added. 'Not everybody can offset the tariff costs like we do, because of our vertical integration, our low-cost manufacturing, our flexibility, our agility, and everything else we have working for Gildan.' The company's Toronto-listed stock closed 7.12 per cent higher on Wednesday at $63.53 per share. The stock hit an all-time intraday high above $78 in early March. Gildan maintained its previously announced guidance for 2025 on Wednesday, while acknowledging the potential for tariffs to weaken profit margins and demand. The company expects mid-single digit full-year sales growth, and free cash flow above US$450 million, versus the US$389 million it booked in 2024. "We're in a great position to take [market] share," Chamandy said. CIBC Capital Markets analyst Mark Petrie notes Gildan can adjust production levels between Bangladesh and Central America to further offset U.S. tariffs. "Over time, we see tariffs and trade uncertainty as a tailwind for Gildan (not unlike the pandemic) as it pushes U.S. customers to favour sourcing in the Western Hemisphere," he wrote in a research note on Tuesday. "We estimate Gildan's unmitigated tariff exposure at roughly a couple hundred basis points," Petrie added. Citing uncertain demand linked to the broader economy, he lowered his price target on Toronto-listed Gildan stock to $56 per share from $60, while maintaining an "outperformer" rating. Correction: A previous version of this story stated that net sales amounted to US$84.7 million. That figure is the net earnings for Gildan Activewear for the quarter. Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
