Gildan Activewear posts revenue growth, unveils leadership changes

Gildan Activewear capped off its 40th anniversary year with strong financial results, including 3.3 billion dollars in revenue, a 2 percent increase, a 21.3 percent adjusted operating margin, and 17 percent adjusted diluted EPS growth, all in line with guidance.

The company also announced executive leadership changes as part of a multi-year succession plan. Chuck Ward, currently president of sales, marketing, and distribution, will become the new executive vice president and chief operating officer, effective March 1, 2025.

Additionally, Rhodri (Rhod) J. Harries, Gildan's EVP and chief financial and administrative officer, is retiring on January 1, 2026. Luca Barile, currently CFO of sales, marketing, and distribution, will succeed Harries as EVP and chief financial officer, effective March 1, 2025.

"By reinforcing our core competencies as a low-cost, large-scale, vertically integrated sustainable manufacturer, we continue to enhance our competitive advantage, and we are well positioned for continued growth in the years ahead," said Glenn J. Chamandy, Gildan’s president and CEO.

"I am very pleased to welcome Chuck and Luca into their new roles, appointments that are a testament to our internal bench strength and the effectiveness of our multi-year succession planning efforts,” Chamandy added.

Gildan's fourth quarter performance

Gildan's fourth-quarter net sales reached 822 million dollars, a 5 percent increase year-over-year. Excluding the impact of the Under Armour phase-out, net sales grew by low double digits.

Activewear sales for the quarter were up 11 percent to 714 million dollars, international sales increased 20 percent year-over-year, while hosiery and underwear sales decreased 23 percent due to the Under Armour business phase-out.

Gross profit reached 253 million dollars, or 30.8 percent of sales, a 60 basis point improvement.

Gildan reveals 2025 outlook

For the fiscal year 2025, the company forecasts revenue growth in mid-single digits, adjusted operating margin to be up approximately 50 basis points, and adjusted diluted EPS in the range of 3.38 dollars to 3.58 dollars, up approximately 13 percent to 19 percent year-over-year.

The company's 2025 assumptions include continued growth in key product categories, driven by innovation, POS growth, market share gains, new program launches, and some improvement in certain markets that were soft in 2024.

For the first quarter of 2025, net sales are expected to be up low single digits year-over-year. Excluding the Under Armour sock license agreement, Q1 net sales are expected to be up mid-single digits. Adjusted operating margin is expected to be in line with the full-year guidance of "up approximately 50 basis points."