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TSE:GIL
EPS of 74c beat estimates of 71c; revenue of $869M beat estimates by 3%. GIL actually lowered guidance but the stock rose anyway as the degree of adjustment was less than expected. RBC raised its target. EPS is now expected at the low end of the prior $2.55 to $2.65 range. Margins dipped, but this is a case of 'investors were expecting worse' and the stock has staged a very nice rally this week.
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GIL has performed well amid a challenging macro outlook, and is now trading at a 10.5x forward P/E. In the 4Q, GIL’s revenue declined 8% to $720M, missing estimates of $761M and EPS of $0.65 slightly missing estimates of $0.68.
GIL’s management expects margin pressure in the first part of 2023 but expects to deliver strong margin performance for the rest of the year.
The company has executed well on its long-term growth strategy by taking advantage of the vertically integrated models as a low-cost manufacturer to expand production to low-cost labour areas such as Bangladesh.
It does so while continuing to expand its margins and returns on net assets (RONA).
Overall, the company has been executing well on its growth plans, has been increasing dividends, and plans on repurchasing shares over the next few years.
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. EPS beat estimates by 16c at 76 cents. Revenues also beat estimates at $784M. Dividends were also raised 10%. Their stock buyback continues as well. Sales rose 14%, with free cash flow at $116M. Good results. Unlock Premium - Try 5i Free
Gildan Activewear Inc. is a Canadian stock, trading under the symbol GIL.TO (previously GIL-T on Stockchase) on the Toronto Stock Exchange (GIL-CT). It is usually referred to as TSX:GIL or GIL.TO
In the last year, no analyst issued a Buy, Sell, or Hold rating on GIL.TO (previously GIL-T on Stockchase) on Stockchase. Read the latest expert commentary for Gildan Activewear Inc..
Gildan Activewear Inc. was recommended as a Top Pick by Christine Poole on 2019-10-09. Read the latest stock experts ratings for Gildan Activewear Inc..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Gildan Activewear Inc..
Gildan Activewear Inc. is followed by 82 investors on Stockchase and is a trending stock that is worth watching.
On 2026-06-19, Gildan Activewear Inc. (GIL.TO) stock closed at a price of $72.85.
Does not own shares in company. Leader in generic clothing. Lost cost producer, but does not believe in growth outlook. Management changes a concern. Would not recommend investing at this time.