Latest news with #GildanSustainableGrowth
Fibre2Fashion
01-08-2025
- Business
- Fibre2Fashion
US' Gildan's H1 2025 revenue rises 4.6%, activewear drives growth
American apparel manufacturer Gildan is expecting mid-single-digit revenue growth in full-year 2025, with adjusted operating margin forecast to improve by approximately 50 basis points (bps). The capital expenditure of the company is projected at around 5 per cent of sales. It narrowed its adjusted diluted earnings per share (EPS) guidance to $3.4–$3.56, representing a year-over-year (YoY) increase of approximately 13 to 19 per cent, slightly adjusted from the earlier range of $3.38–$3.58. Free cash flow is expected to exceed $450 million. Gildan has reported strong H1 2025 results with net sales up 4.6 per cent to $1.63 billion, driven by 10.6 per cent growth in activewear. Q2 net sales hit $919 million, led by new product innovations. Adjusted EPS rose to $1.56. For FY25, Gildan expects mid-single-digit revenue growth, adjusted EPS of $3.40â€'$3.56, and free cash flow above $450 million, reaffirming its sustainable growth strategy. The company has reaffirmed its full-year 2025 guidance, underpinned by the continued execution of its Gildan Sustainable Growth (GSG) strategy. Despite a volatile macroeconomic environment, the company remains confident in its vertically integrated, low-cost manufacturing model and strong market positioning. The guidance also accounts for current tariffs and mitigation strategies, anticipated growth in key product categories, new programme launches, ongoing market share gains, and the continued benefit of the Barbados jobs credit introduced in 2024. It also includes continued share repurchases within Gildan's set leverage framework, the company said in a press release. For the third quarter (Q3) of 2025, it expects net sales to rise in the low single digits, influenced by a timing shift in orders. Adjusted operating margin and effective tax rate are projected to remain consistent with Q2 and the full year 2024 levels. Meanwhile, Gildan posted net sales of $1,630 million in the six months of 2025 ended June 29, marking a 4.6 per cent YoY increase. The activewear sales rose by 10.6 per cent to $1,470 million, driven mainly by increased volumes and a favourable product mix, particularly across US distributors and national accounts. This growth was partially offset by ongoing weakness in international markets, where sales declined 9.2 per cent to $112 million. Sales in the hosiery and underwear segment dropped 30 per cent, impacted by reduced volumes, an unfavourable mix, overall market softness, and the discontinuation of the Under Armour line in the first quarter (Q1) of 2025. The gross profit of the company climbed by $38 million to $511 million, with the gross margin improving by 100 basis points (bps) to 31.4 per cent, attributed to lower raw material costs and favourable pricing. SG&A expenses were down $60 million to $169 million. On an adjusted basis, selling, general and administrative (SG&A) expenses stood at $167 million, or 10.3 per cent of net sales—up from 9.8 per cent last year—mainly due to increased variable compensation and distribution costs. The operating income in Q2 rose to $329 million, representing 20.2 per cent of net sales, up from $246 million or 15.8 per cent last year. Adjusted operating income reached $344 million, or 21.1 per cent of net sales—an improvement of $23 million and 50 basis points YoY. As a result of stronger financial performance and a reduced share count, GAAP diluted EPS surged to $1.47, while adjusted diluted EPS rose to $1.56, compared to $0.81 and $1.33 respectively in the prior-year period. In the second quarter (Q2) of 2025, the company has reported net sales of $919 million, up 6.5 per cent year-over-year (YoY), aligning with its projected mid-single-digit growth. Activewear led the way with $822 million in sales, rising 12 per cent on the back of higher volumes, improved product mix, and pricing. The launch of innovative products, including its new Soft Cotton Technology, helped drive market share gains and favourable customer reception, particularly across North American distributors and national accounts. International sales in Q2, however, declined 14.1 per cent due to continued demand softness. Sales in the hosiery and underwear segment also fell sharply by 23.3 per cent to $96 million, reflecting weak market conditions and lower volumes. The gross profit rose to $289 million, or 31.5 per cent of net sales, up from 30.4 per cent a year ago, supported by lower input costs and favourable pricing. SG&A expenses were $82 million, significantly down from $124 million last year. The operating income surged to $199 million (21.7 per cent of net sales), up from $141 million a year earlier. Adjusted operating income was $209 million or 22.7 per cent of net sales, flat YoY and in line with company guidance. 'The Gildan Sustainable Growth (GSG) strategy continues to drive solid financial performance, as evidenced by our record second quarter results, driven by strong net sales growth of 12 per cent in Activewear,' said Glenn J Chamandy, president and chief executive officer (CEO) at Gildan . 'As we navigate through the current fluid operating environment, we are focusing on what we can control, which is allowing us to continue to strengthen our competitive position and drive profitable top line growth. Moreover, our performance reflects the agility and resilience of our low-cost vertically integrated business model which remains the cornerstone of our ability to deliver long-term value for our stakeholders.' Fibre2Fashion News Desk (SG)
Yahoo
20-05-2025
- Business
- Yahoo
Gildan Publishes Its 2024 ESG Report Highlighting Advancements Towards Its 2030 ESG Targets
MONTREAL, QC / / May 20, 2025 / Gildan Activewear Inc. (GIL:TSX and NYSE) ("Gildan" or "the Company") is pleased to announce the publication of its 21st Environmental, Social, and Governance (ESG) Report, outlining the Company's continued progress against the ten targets of its Next Generation ESG strategy. "Over the years, ESG, which is one of three pillars of our Gildan Sustainable Growth (GSG) strategy, has been foundational to support our low-cost manufacturing operations, unlocking innovative business solutions and our ability to meet changing customer and consumer needs," says Glenn Chamandy, President and CEO of Gildan. "Just as importantly, it has also helped us to attract and retain an engaged, experienced, and highly skilled workforce, and maintain the trust and support of the communities in which we operate. Together with our ~50,000 employees, we are committed to continue making apparel with respect." In 2024, Gildan achieved notable advancements towards its Next Generation ESG targets as the Company: Reduced water intensity at its operated manufacturing facilities by 25.2% per kilogram produced (compared to a 2018 baseline) by leveraging innovative technologies and proprietary processes Increased the amount of sustainable1 cotton sourced from 35.7% in 2023 to 77.3% in 2024 Doubled the percentage of recycled polyester or alternative fibre and/or yarns sourced from 2023 to 2024 Achieved ISO 45001 certification in two additional facilities in 2024, bringing the total number of certified facilities to five Gildan also continued to be recognized for its ESG practices. The Company was: Included on the Dow Jones Best-in-Class North America Index (formerly the Dow Jones Sustainability™ North America Index), marking the Company's 12th consecutive year of inclusion in this index Included in the 2025 Sustainability Yearbook by S&P Global for the 13th consecutive year Included in CDP's Leadership Band in 2025 for our 2024 climate change disclosure - marking the fifth time that Gildan has achieved this recognition Named in the inaugural edition of TIME's World Most Sustainable Companies Recognized as one of Canada's Best 50 Corporate Citizens by Corporate Knights for the third consecutive year The full 2024 ESG Report and supporting indices and documents can be found here. To further enhance transparency and streamline reporting, we have included information about the Company's approach to key ESG topics on our corporate website. 1. We consider the following types of cotton to be sustainable: sustainable cotton provided through third-party verified programs that support environmental and/or social sustainability improvements and/or outcomes. Sustainable cotton from third-party verified programs includes, for example, verified U.S.-grown cotton (USCTP), Better Cotton (formerly BCI), organic cotton, recycled or regenerative cotton, and fair-trade cotton. About GildanGildan is a leading manufacturer of everyday basic apparel. The Company's product offering includes activewear, underwear and socks, sold to a broad range of customers, including wholesale distributors, screenprinters or embellishers, as well as to retailers that sell to consumers through their physical stores and/or e-commerce platforms and to global lifestyle brand companies. The Company markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan®, American Apparel®, Comfort Colors®, GOLDTOE®, and Peds®, and under an exclusive licensing agreement for the printwear channel for Champion®. Gildan owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Bangladesh. Gildan operates with a strong commitment to industry-leading labour, environmental and governance practices throughout its supply chain in accordance with its comprehensive ESG program embedded in the Company's long-term business strategy. More information about the Company and its ESG practices and initiatives can be found at Investor inquiries: Jessy Hayem, CFA Senior Vice-President, Head of Investor Relations and Global Communications (514) 744-8511 jhayem@ Media inquiries:Genevieve Gosselin Director, Global Communications and Corporate Marketing (514) 343-8814 communications@ View additional multimedia and more ESG storytelling from Gildan Activewear on Contact Info:Spokesperson: Gildan ActivewearWebsite: info@ SOURCE: Gildan Activewear View the original press release on ACCESS Newswire
Yahoo
20-05-2025
- Business
- Yahoo
Gildan Publishes its 2024 ESG Report Highlighting Advancements towards its 2030 ESG Targets
MONTREAL, May 20, 2025 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL: TSX and NYSE) ('Gildan' or 'the Company') is pleased to announce the publication of its 21st Environmental, Social, and Governance (ESG) Report, outlining the Company's continued progress against the ten targets of its Next Generation ESG strategy. 'Over the years, ESG, which is one of three pillars of our Gildan Sustainable Growth (GSG) strategy, has been foundational to support our low-cost manufacturing operations, unlocking innovative business solutions and our ability to meet changing customer and consumer needs,' says Glenn Chamandy, President and CEO of Gildan. 'Just as importantly, it has also helped us to attract and retain an engaged, experienced, and highly skilled workforce, and maintain the trust and support of the communities in which we operate. Together with our ~50,000 employees, we are committed to continue making apparel with respect.' In 2024, Gildan achieved notable advancements towards its Next Generation ESG targets as the Company: Reduced water intensity at its operated manufacturing facilities by 25.2% per kilogram produced (compared to a 2018 baseline) by leveraging innovative technologies and proprietary processes Increased the amount of sustainable1 cotton sourced from 35.7% in 2023 to 77.3% in 2024 Doubled the percentage of recycled polyester or alternative fibre and/or yarns sourced from 2023 to 2024 Achieved ISO 45001 certification in two additional facilities in 2024, bringing the total number of certified facilities to five Gildan also continued to be recognized for its ESG practices. The Company was: Included on the Dow Jones Best-in-Class North America Index (formerly the Dow Jones Sustainability™ North America Index), marking the Company's 12th consecutive year of inclusion in this index Included in the 2025 Sustainability Yearbook by S&P Global for the 13th consecutive year Included in CDP's Leadership Band in 2025 for our 2024 climate change disclosure – marking the fifth time that Gildan has achieved this recognition Named in the inaugural edition of TIME's World Most Sustainable Companies Recognized as one of Canada's Best 50 Corporate Citizens by Corporate Knights for the third consecutive year The full 2024 ESG Report and supporting indices and documents can be found here. To further enhance transparency and streamline reporting, we have included information about the Company's approach to key ESG topics on our corporate website. 1. We consider the following types of cotton to be sustainable: sustainable cotton provided through third-party verified programs that support environmental and/or social sustainability improvements and/or outcomes. Sustainable cotton from third-party verified programs includes, for example, verified U.S.-grown cotton (USCTP), Better Cotton (formerly BCI), organic cotton, recycled or regenerative cotton, and fair-trade cotton. About Gildan Gildan is a leading manufacturer of everyday basic apparel. The Company's product offering includes activewear, underwear and socks, sold to a broad range of customers, including wholesale distributors, screenprinters or embellishers, as well as to retailers that sell to consumers through their physical stores and/or e-commerce platforms and to global lifestyle brand companies. The Company markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan®, American Apparel®, Comfort Colors®, GOLDTOE®, and Peds®, and under an exclusive licensing agreement for the printwear channel for Champion®. Gildan owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Bangladesh. Gildan operates with a strong commitment to industry-leading labour, environmental and governance practices throughout its supply chain in accordance with its comprehensive ESG program embedded in the Company's long-term business strategy. More information about the Company and its ESG practices and initiatives can be found at Investor inquiries: Jessy Hayem, CFA Senior Vice-President, Head of Investor Relations and Global Communications (514) 744-8511 jhayem@ Media inquiries:Genevieve GosselinDirector, Global Communications and Corporate Marketing(514) 343-8814communications@ A photo accompanying this announcement is available at
Fibre2Fashion
01-05-2025
- Business
- Fibre2Fashion
Canada's Gildan expects mid-single-digit growth in 2025
Canadian manufacturer of branded clothing Gildan has reaffirmed its 2025 outlook, reflecting confidence in its Gildan Sustainable Growth (GSG) strategy and resilient vertically integrated business model, despite ongoing macroeconomic and geopolitical challenges. The company expects full-year revenue to grow in the mid-single digits, with adjusted operating margin rising by approximately 50 basis points (bps). The adjusted diluted earnings per share (EPS) is projected to range between $3.38 and $3.58, representing a year-on-year (YoY) increase of roughly 13 to 19 per cent. The capital expenditure (capex) is anticipated to be around 5 per cent of sales, and free cash flow is expected to exceed $450 million. Gildan has reaffirmed its 2025 outlook with mid-single-digit revenue growth, a 50 bps rise in operating margin, EPS of $3.38â€'$3.58, and free cash flow above $450 million. Its Q1 2025 sales rose 2.3 per cent to $712 million, led by 9 per cent activewear growth. Gross margin improved to 31.2 per cent. It earned recognition in S&P's Sustainability Yearbook and CDP's Leadership band for ESG performance. The forecast incorporates the impact of newly imposed US tariffs and global trade policy changes, with mitigation strategies in place, including operational flexibility and manufacturing cost advantages. Continued growth is expected across key product categories through innovation, new programme launches, and market share gains, Gildan said in a press release. Gildan also benefits from the Barbados jobs credit programme introduced in 2024 and foresees a stable effective tax rate despite the implementation of global minimum tax legislation in Canada and Barbados. For the second quarter (Q2) of 2025, the company expects net sales to grow mid-single digits, with adjusted operating margin remaining comparable to Q2 2024. Meanwhile, Gildan recorded net sales of $712 million in the first quarter (Q1) of 2025, an increase of 2.3 per cent YoY, in line with previously provided guidance of low single-digit growth. Activewear sales of $647 million were up 9 per cent driven by higher sales volumes which reflected favourable product mix in North America, with a higher proportion of fleece and ring spun products. The company continued to see market share gains in key growth categories and a positive market response to its recently introduced new products which feature key innovations, including new soft cotton technology. Furthermore, in parallel with solid sales to North American distributors, it observed continued momentum with national account customers, driven by its strong overall competitive positioning, added the release. Its international sales decreased by 2.5 per cent YoY primarily due to softness in Latin America (LATAM) and Asia, partly offset by strong growth in Europe. The company generated gross profit of $222 million, or 31.2 per cent of net sales, versus $211 million, or 30.3 per cent of net sales, in Q1 2024 representing a 90-bps improvement which was primarily driven by lower raw material costs. Additionally, Gildan generated operating income of $130 million, or 18.2 per cent of net sales, comparing favourably to $105 million, or 15.1 per cent of net sales last year, which includes $5 million of restructuring and acquisition-related costs. 'Through the continued successful execution of our three strategic pillars— capacity expansion, innovation and ESG —we are not only further strengthening our competitive position but also driving top line growth and enhancing profitability. Our solid foundation, underpinned by our vertically integrated business model, and our operational and financial discipline, provide us with agility to navigate the current uncertain environment. We remain deeply committed to delivering long-term value for our stakeholders and to diligently executing on the opportunities that lie ahead,' said Glenn J Chamandy, president and chief executive officer (CEO) at Gildan. Gildan was included in S&P's 2025 sustainability yearbook for the 13th year and listed in the Carbon Disclosure Project's (CDP) Leadership band for the fifth time. The company received recognition for its performance in greenhouse gas (GHG) emissions, risk management, and emission reduction measures, indicating continued efforts in environmental, social, and governance (ESG) practices, said the release. Fibre2Fashion News Desk (SG)
