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Gildan Activewear Inc. GIL is scheduled to release fourth-quarter 2024 results on Feb. 19, before market open. The Zacks Consensus Estimate for revenues is pegged at $793.5 million, indicating a rise of 1.4% from the prior-year figure.
The consensus estimate for earnings per share has been stable at 80 cents per share in the past 30 days. The estimate indicates an increase of 6.7% from the year-ago period’s number. GIL has a trailing four-quarter earnings surprise of 5.4%, on average.
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Gildan Activewear, Inc. Price and Consensus
Gildan Activewear, Inc. price-consensus-chart | Gildan Activewear, Inc. Quote
Key Factors to Note Ahead of GIL’s Results
Gildan’s upcoming quarterly results are expected to reflect gains from its Sustainable Growth Strategy, which emphasizes capacity expansion, innovation and ESG initiatives as key drivers of its competitive strength and profitability.
The ramp-up of the new manufacturing complex in Bangladesh remains on track, projected to reach an exit capacity rate of 75% by year end, enhancing supply chain efficiencies and supporting long-term growth in ring-spun products. Additionally, the ongoing modernization of yarn operations in the United States continues to drive operational improvements. Gains from these initiatives are likely to benefit the to-be-reported quarter.
Gildan is expected to benefit from lower raw material and manufacturing input costs, which should bolster margins. The Activewear segment continues to gain momentum, fueled by market share expansion and strong demand for newly introduced soft cotton technology products. Also, increased international sales, particularly in Europe, are expected to contribute positively, driven by inventory replenishment and enhanced distribution capabilities. Moreover, positive consumer response to Gildan’s latest product innovations further strengthens its market position.
On its last earnings call, management refined its outlook, reflecting strong execution and financial resilience. The company now expects low-single-digit revenue growth. This accounts for the expiration of the Under Armour sock license agreement on March 31, 2024, which had a minimal impact on profitability. Excluding this, revenue growth is expected to be in the mid-single-digit range. Adjusted operating margin is projected to be slightly above 21%. POS (Point of Sale) trends are expected to improve through the final quarter, with growth across all channels.
Earnings Whispers for GIL
Our proven model does not conclusively predict an earnings beat for Gildan Activewear this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Gildan Activewear currently carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.