Gildan Activewear Inc. GIL has shown an outstanding 44.8% surge in its stock price over the past year. The stock has outperformed the broader Consumer Discretionary sector and the S&P 500, which posted increases of 12.6% and 9.7%, respectively. Meanwhile, the Zacks Textile - Apparel industry, in which the company operates, has fallen 15.4% in the same time frame.

The company is benefiting from its Sustainable Growth strategy, which aims at delivering organic top and bottom-line growth via capacity expansion, innovation and ESG. Strength in its Activewear segment also acts as a tailwind. Much of the stock’s upside is also due to GIL’s robust first-quarter 2025 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate and grew year over year.

Closing the current trading session at $46.94, GIL stock is now 15.3% below its 52-week high of $55.39, reached on Feb. 21. However, it is trading at a 45.2% premium to its 52-week low mark.

Gildan Activewear has also outperformed its key competitors, such as Duluth Holdings DLTH, GIII Apparel Group GIII and Crocs CROX. In a year, DLTH, GIII and CROX have registered declines of 58.8%, 10.3% and 27.6%, respectively.

GIL Price Performance

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GIL Drives Growth Via Its Sustainable Growth & Other Plans

The company is among the world’s leading vertically integrated manufacturers of apparel. The vertical integration structure offers it unmatched control and visibility across its value chain. Expertise in developing large-scale and vertically integrated manufacturing hubs helps GIL to operate efficiently and offer an edge over its competitors.

Successful execution of the company’s strategic initiatives, including Sustainable Growth action, has been yielding results. It aims at expanding its global production capacity and enhancing its cost structure, innovation and product-development processes. Its strategic opportunities include potential acquisitions supporting and expanding its business. Gildan Activewear targets acquiring leadership in innovation in all the areas of operations so that it can offer top-quality and value-driven products.

GIL strictly focuses on basic products, the apparel industry, mainly within the retail channel, in order to resonate well with the evolving consumer trends, with potential shifts in their preferences. The company has been gaining on its unwavering focus on offering exceptional value and a distinctive shopping experience to customers.

Gildan Activewear is leveraging its competitive advantage as a low-cost, vertically integrated manufacturer, with robust capacity-expansion efforts, innovative products and solid ESG practices. This will poise the company well to boost revenue growth, profitability and asset utilization, all of which aid in delivering in attractive shareholder value creation.

For 2025, management expects net sales to grow to increase year over year in the mid-single digits. The adjusted operating margin is projected to improve 50 basis points. Adjusted earnings are envisioned between $3.38 and $3.58 per share, indicating a year-over-year increase of 13-19%. The free cash flow is anticipated to exceed $450 million. For the second quarter of 2025, net sales are expected to increase year over year in the mid-single digits.