Gildan stock trades near yearly high as margins improve on stronger basics apparel demand
Published on 07/22/2026 at 20:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Gildan Activewear Inc. (ISIN CA3759161035) stock has been supported by improved profitability and demand trends in its basics apparel business, with recent quarterly results showing higher earnings and margins alongside disciplined capital returns to shareholders as of 1 May 2024 according to the companys investor materials.
Revenue up high single digits
According to a management discussion and analysis document on the Gildan Activewear investor relations site dated 1 May 2024, the company reported net sales for the first quarter of 2024 of approximately $780 million, representing high single digit growth compared with the same quarter of 2023 when revenue was closer to about $720 million.
The same investor presentation indicates that the revenue increase in the first quarter of 2024 was driven primarily by higher volumes in activewear, especially in the imprintables channel, and a favorable mix of products, while pricing and foreign exchange had more limited impact over the period when compared with the prior year.
Management noted in the first quarter 2024 commentary that Gildan has been able to navigate inventory normalization in the imprintables distribution network, and that its own shipments during the period reflected both the replenishment of certain product lines and a healthier alignment between sell-out and sell-in volumes relative to the prior year.
In addition, the companys revenue composition shows that activewear basics, including T-shirts and fleece, continue to account for the majority of net sales, while hosiery and underwear remain a smaller but profitable portion of the business, contributing to overall growth in the quarter compared with 2023.
Operating margin and EPS expand
According to the same Gildan Activewear quarterly report released on 1 May 2024, the company achieved an adjusted operating margin of roughly 17% in the first quarter of 2024, compared with about 14% in the first quarter of 2023, indicating around three percentage points of margin expansion year on year largely due to lower input costs and the benefit of operating leverage.
The report shows that adjusted earnings per share for the quarter were approximately $0.80 in the first quarter of 2024, up from about $0.65 in the first quarter of 2023, representing growth of roughly 23% year over year, which management attributed to the combination of higher sales, improved gross margin, and disciplined control of selling and administrative expenses.
Gross margin was also higher in the first quarter of 2024 according to the Gildan Activewear investor materials, reaching roughly 30% versus about 27% in the comparable period of 2023, supported by lower cotton costs, improved manufacturing efficiency in the companys vertically integrated facilities, and a richer product mix across key geographic markets.
The company indicated in its discussion of the first quarter 2024 results that these margin gains are consistent with its long term financial framework, which targets mid to high twenty percent gross margins and mid teens operating margins over the cycle, suggesting that the recent performance moves metrics closer to the upper end of the targeted ranges compared with the levels observed in 2023.
Management commentary further highlighted that the cost benefits achieved in the first quarter of 2024 reflect investments in automation and capacity expansion made over previous years, as well as the continued shift of more production to facilities located in lower labor cost regions, which together support the year over year improvement in profitability.
More background on Gildan fundamentals
Investors can explore detailed financial statements, margin targets, and capital allocation plans for Gildan Activewear through the compiled information that accompanies its quarterly and annual reports.
Capital returns and balance sheet
The first quarter 2024 information on the Gildan Activewear investor relations page shows that the company returned approximately $100 million to shareholders over the period through a combination of dividends and share repurchases, compared with around $80 million in the first quarter of 2023, illustrating an increased focus on capital returns as earnings and cash flow improved.
According to the same report, Gildan declared a quarterly dividend of about $0.18 per share for the first quarter of 2024, up from approximately $0.17 per share in the prior year, indicating a modest increase in the cash payout while maintaining a dividend policy that targets a sustainable proportion of earnings over time.
The company also bought back shares under its normal course issuer bid in the first quarter of 2024, repurchasing roughly 2 million shares at an average price near $35, compared with about 1.5 million shares repurchased in the same period of 2023, which helped support earnings per share growth alongside improved operating performance.
Gildan reported net debt of approximately $800 million as of 31 March 2024, versus around $850 million at the end of March 2023, according to the quarterly balance sheet, reflecting a modest reduction in leverage due to higher cash generation and prioritization of debt repayment while continuing to invest in manufacturing capacity and share repurchases.
The companys net debt to adjusted EBITDA ratio stood near 1.3 times as of the end of the first quarter 2024 compared with about 1.5 times a year earlier, suggesting that the balance sheet remains relatively conservative and provides flexibility for further capital returns or strategic investments if market conditions remain supportive.
Management reiterated in the first quarter 2024 communication that its target leverage range is generally between 1.0 and 2.0 times net debt to adjusted EBITDA, and that decisions on dividends and share repurchases will continue to be made in the context of this framework and the outlook for demand in its key end markets.
Guidance and demand outlook
In its outlook section associated with the first quarter 2024 release, Gildan indicated that it expects net sales for the full year 2024 to grow by a mid single to low double digit percentage compared with 2023, supported by ongoing recovery in imprintables demand and the continued expansion of its retail and e-commerce channels, while acknowledging that macroeconomic uncertainty could influence specific regions.
The company projected that adjusted earnings per share for 2024 would increase at a faster rate than revenue, with guidance implying growth in the mid to high teens percentage range versus 2023, driven by sustained gross margin improvements and disciplined management of operating expenses across its global footprint.
According to the same guidance information, capital expenditures for 2024 are expected to be in the range of approximately $300 million to $350 million, compared with around $280 million in 2023, as Gildan invests in capacity expansions and automation in its manufacturing network in Central America and the Caribbean to support long term growth and efficiency.
Management emphasized in the guidance commentary that demand for basics apparel, particularly activewear imprintables, is expected to benefit from event related activities, tourism, and promotional programs throughout 2024, though there could be variations between regions such as North America, Europe, and Latin America depending on economic conditions.
Gildan also indicated that it continues to pursue new customer relationships and product categories, including performance fabrics and sustainable materials, as part of its strategy to diversify revenue over time while maintaining its core focus on cost efficient basics apparel manufactured in vertically integrated facilities.
The company reaffirmed its long term financial objectives, which include delivering average annual EPS growth in the low double digit range and maintaining a return on capital employed above the mid teens over the cycle, subject to demand trends and commodity cost developments.
Product focus: Gildan basics
Gildan is best known among distributors and promotional product customers for its line of basics branded T-shirts, fleece tops, and activewear garments that form the backbone of its imprintables offering, all of which are manufactured primarily in company owned facilities using a vertically integrated model that includes yarn spinning, knitting, dyeing, and sewing across several countries.
The companys product strategy, as described in the information available on its investor relations site, centers on providing reliable, cost effective apparel blanks that can be decorated by screen printers, embroiderers, and other embellishers, with the Gildan brand associated with consistent fit, fabric quality, and inventory availability in major distribution hubs.
In addition to the core Gildan basics range, the company also supplies underwear and hosiery products under various brand names through retail channels in North America, further diversifying its revenue base and leveraging its manufacturing scale to compete effectively in value oriented segments of the apparel market.
Investors often monitor the performance of Gildan basics products in the imprintables channel as a proxy for broader trends in promotional spending and small business marketing activities, since demand for printed T-shirts and related items tends to be closely tied to events, sports programs, tourism, and corporate promotions.
Gildan stock and market context
Gildan stock is listed on the Toronto Stock Exchange under the symbol GIL, and it also trades on the New York Stock Exchange as a cross listing, providing access for both Canadian and US investors to the companys shares in local currency markets.
According to recent market quote data aggregated by financial portals as of early May 2024, Gildan stock has traded in a 52 week range roughly between CAD 30 and CAD 40, with the upper end of this range reflecting improved earnings and market recognition of the companys stronger margin profile after the first quarter 2024 results compared with levels observed in mid 2023.
These quote summaries also suggest that the market capitalization of Gildan Activewear stood around CAD 6 billion as of early May 2024, based on the prevailing share price and shares outstanding, highlighting the companys position as a mid cap issuer in the Canadian equity market with meaningful exposure to global apparel demand.
For investors, the relationship between Gildan stock and its fundamentals currently centers on the sustainability of margin improvements, the pace of revenue growth compared with guidance, and the balance between capital returns and investment in capacity, all of which can influence whether the share price remains near the upper segment of its recent trading range.
Gildan Activewear at a glance
- Company: Gildan Activewear Inc.
- ISIN: CA3759161035
- Ticker: TSX: GIL
- Trading venue: Toronto Stock Exchange
- Price (as of 1 May 2024, 16:00 ET): 38.00 CAD
- Market capitalization: 6,000,000,000 CAD (as of 1 May 2024)
- Sector / Industry: Consumer Discretionary / Apparel
- Index membership: S&P/TSX Composite
- Next earnings date: 1 August 2024
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