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Dive Brief:
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Gildan Activewear has appointed Chuck Ward to the newly created position of chief operating officer and executive vice president, according to a press release Wednesday. Ward was most recently the company’s president of sales, marketing and distribution.
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Gildan also announced a CFO transition plan. Rhodri Harries, current chief financial and administrative officer, will retire in January 2026. Luca Barile, currently CFO of sales, marketing and distribution, will succeed Harries and take the title of EVP and CFO on March 1.
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The company announced the changes on the same day as its fourth quarter earnings results. In Q4, Gildan net sales totaled $822 million, up 5% year over year. For the full year, the company’s net sales were about $3.3 billion, up 2%.
Dive Insight:
The new leadership announcements come after Gildan underwent a proxy battle last year between the company and activist investor group Browning West, which began when Gildan Co-founder and CEO Glenn Chamandy was fired. He ultimately returned in May with a slate of board members approved by Browning West.
“Despite last year’s internal strife and uneven apparel demand, we believe Gildan is gaining share in its core printwear due to its production cost advantage,” said David Swartz, senior equity analyst at Morningstar Research Services.
In the fourth quarter, Gildan’s activewear sales, its largest segment, totaled $714 million, up 11% year over year. Swartz said he expects this trend to continue due to the company’s sell through rates, product introductions and reduced competition. Gildan’s deal with Champion for printwear should improve Gildan’s share in college bookstores and other channels, per Swartz.
However, Gildan’s hosiery and underwear sales fell 23%, which the company attributed to the end of a sock licensing agreement with Under Armour. The phase-out of that agreement has impacted the segment over the last several quarters. Excluding the impact of the phase out, Gildan said the segment would have grown by high single digits.
The company’s international sales increased 20% in Q4, which marked the second consecutive quarter of positive results in the segment after several years of declines, according to Brian Yarbrough, an analyst at Edward Jones. This boost could help alleviate concerns over Gildan opening two new larger facilities, per Yarbrough.