Sign in

    Christopher Li • Desjardins Securities

    Christopher Li's questions to Gildan Activewear Inc (GIL) leadership

    Christopher Li's questions to Gildan Activewear Inc (GIL) leadership • Q1 2025

    Question

    Christopher Li of Desjardins Securities Inc. sought to confirm if the updated guidance reflects a more conservative industry demand outlook. He also asked about the visibility and security of the new programs expected to contribute 75% of growth, and their potential risk in an economic downturn.

    Answer

    EVP and CFO Luca Barile confirmed the guidance incorporates a more conservative market assumption of flat to down low-single-digit demand. This is expected to be offset by market share gains and new programs. President and CEO Glenn Chamandy added that these new programs are secure because they involve taking over quantified retail space for replenishment products, which carry no fashion risk. He noted that while a downturn could slightly temper program size, this possibility has already been factored into the company's forecast.

    Ask Fintool Equity Research AI

    Christopher Li's questions to Gildan Activewear Inc (GIL) leadership • Q4 2024

    Question

    Christopher Li inquired about inventory levels at Gildan's wholesale and national account customers and whether there were signs of destocking. He also asked if the guided mid-single-digit sales growth for 2025 would be consistent throughout the year or back-half weighted due to new program launches.

    Answer

    EVP & CFO Rhodri Harries described customer inventory levels as well-balanced across channels and stated the company is not seeing or factoring in any major destocking. Regarding the 2025 sales cadence, Harries indicated that growth should be fairly consistent through the year. While President & CEO Glenn Chamandy noted some new fleece programs are naturally weighted to the second half, Harries affirmed that after the Q1 Under Armour phase-out, the company expects solid, consistent growth.

    Ask Fintool Equity Research AI

    Christopher Li's questions to Gildan Activewear Inc (GIL) leadership • Q2 2024

    Question

    Christopher Li asked about the potential impact of falling cotton prices on margins for next year. He also inquired about where M&A ranks in Gildan's capital allocation priorities, especially given the weakening of some competitors.

    Answer

    CEO Glenn Chamandy projected that the impact of lower cotton prices on 2025 margins would likely be neutral, as the savings would help offset other inflationary pressures like labor and energy, allowing the company to maintain stable pricing. He clarified that the primary capital allocation focus is returning capital to shareholders via the NCIB, stating that Gildan can capture competitor sales organically without the need for M&A.

    Ask Fintool Equity Research AI