By
Bloomberg
Published
May 1, 2025
Gildan Activewear Inc. kept its full-year guidance unchanged in the first quarter, saying it expects its low-cost apparel business to withstand a feared economic slowdown fueled by a trade war with the U.S.
The Montreal-based activewear manufacturer expects revenues to grow by mid-single digits in 2025 compared to a year ago. The decision to maintain the guidance reflects an “understanding of global trade and geopolitical environments,” company management said during a call with analysts on Tuesday.
Chief Executive Officer Glenn Chamandy said Gildan gets its competitive advantage from its vertical integration and low-cost manufacturing. He added that the company sources a significant amount of cotton and yarn from the US, protecting it to some extent from the 10% reciprocal tariffs on products sourced from outside of the country.
“I think we’re well-positioned overall to continue our momentum and continue taking share,” Chamandy told analysts.
Gildan earned an adjusted 59 cents per share in the first quarter, coming ahead of the 57 cents expected by analysts in a Bloomberg survey. The company reported $711.7 million in net sales for the quarter.
It is sticking with its forecast at a time when an uncertain economic environment prompted some other North American companies like Lightspeed Commerce Inc. and General Motors Co. to withdraw or lower their expected earnings estimates.
TD Cowen analyst Brian Morrison said Gildan is poised to gain market share and expand Central American capacity, which should improve investor confidence in the company maintaining its guidance over the next two years.
“Although the industry appears to be modestly slowing, Gildan’s market-share gains appear to be accelerating,” Morrison wrote to clients on Wednesday. “We believe tariffs impact the cost structure of peers more significantly than Gildan, in turn widening its cost advantage.”
The results come nearly a year after Chamandy was reinstated to the helm following a lengthy battle against the board. Once he returned, he laid out a plan with Los Angeles-based investment firm Browning West LP to boost revenue, borrow money and accelerate share buybacks to boost the stock price.
Shares have gained over 50% in the span between May 2024, when Chamandy was officially named as CEO, to a February peak of C$78.42. They reversed course in the wake of tariff worries and a broader market selloff and closed at C$59.25 in Toronto on Tuesday.
