Stock of the Day

November 28, 2023

Gildan Activewear (GIL)

$52.16
-$0.96 (-1.8%)
Market Cap: $9.84B

About Gildan Activewear

Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Glidan Softstyle, Gildan Heavy Cotton, Gildan Ultra Cotton, Gildan DryBlend, Gildan HeavyBlend, Comfort Colors, and American Apparel brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks under the Gildan, Under Armour, GoldToe, Signature Gold by Goldtoe, Peds, MediPeds, All Pro, and GoldTeo Edition TM brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1946 and is headquartered in Montreal, Canada.

Today's Trend

Gildan Activewear, Inc. (NYSE/TSX: GIL) is benefiting from strong quarterly earnings, a bullish analyst revision and continued revenue growth. However, legal-investigation headlines, a reported net loss and below-consensus sales may temper investor enthusiasm.

  • Scotia raised its price target for GIL from $65 to $67 and upgraded the stock to “sector outperform,” implying approximately 20% upside from the cited market price. BayStreet.CA analyst rating
  • Gildan reported second-quarter adjusted earnings of $1.28 per share, beating the $1.11 consensus estimate and rising from $0.97 a year earlier. Revenue from continuing operations reached $1.58 billion, up 72.3% year over year, while operating margin was 11.1% and adjusted operating margin was 22.3%. The company also updated its full-year 2026 guidance. Gildan second-quarter results
  • The company declared a quarterly dividend of $0.249 per share, payable September 14 to shareholders of record August 20. The dividend represents an annualized yield of approximately 1.8%, supporting the stock’s income appeal.
  • Gildan announced the sale of HanesBrands Australia, a move that could simplify its portfolio and sharpen focus on core operations. Retail Insider report
  • Despite adjusted earnings strength, reported coverage highlighted a $50 million quarterly net loss, and revenue of $1.58 billion was below the $1.61 billion analyst consensus. MarketBeat earnings report
  • Unusually high trading in Gildan put options signals that some investors are positioning for downside, although options activity alone does not establish the stock’s future direction. Put options report
  • Rosen Law Firm announced an investigation into potential securities claims alleging that Gildan may have issued materially misleading business information. The investigation could create legal costs, reputational risk and uncertainty for shareholders, although no wrongdoing has been established. Rosen Law Firm investigation

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