Gildan outlines strategic priorities, confirms 2024 outlook

Gildan Activewear’s president and CEO, Vince Tyra has unveiled his key strategic priorities for the company.

Concurrently, Gildan also reconfirmed its 2024 full year guidance and said that the preliminary first quarter revenue is expected to come in at approximately 695 million dollars or down about 1 percent year over year.

Reflecting on his first 90 days at Gildan, Vince Tyra said in a statement: “Having completed 90 days at the helm of Gildan, I wanted to share with you my key strategic priorities and articulate how we can leverage our strengths and accelerate value creation for all stakeholders. My management team and I will continue to review the business and we look forward to presenting a fuller view at an investor day this fall.”

Gildan CEO outlines his strategic priorities

Further building on the execution of the Gildan Sustainable Growth (GSG) plan, Vince Tyra outlined strategic priorities to unlock further growth potential.

These five key priorities include executing supply chain initiatives to maintain availability, cost leadership and industry leading margins; leveraging Gildan’s unique brands and developing distinct commercial capabilities; deepening Gildan’s relationships with existing and prospective retail partners; complementing Gildan’s strong North American market position with renewed focus on select international markets; and empowering and building world-class talent and leadership to ensure long term resilience of Gildan’s business.

Gildan projects mid-single digit growth over the 2025-2028 period

Assuming no deterioration in the current macroeconomic environment, Gildan projects, over the 2025-2028 period, net sales growth at a compound annual growth rate in the mid-single digits range, annual adjusted operating margin in the range of 18 percent to 21 percent, capital expenditures (capex) as a percentage of sales of about 5 percent per year, and adjusted diluted EPS growth per annum in the high-single to low double-digit range.

Gildan also reconfirmed its 2024 full year guidance of revenue growth to be flat to up low-single digits; adjusted operating margin slightly above the high end of the 18 percent to 20 percent annual target range; and adjusted diluted EPS in the range of 2.92 dollars to 3.07 dollars, up between 13.5 percent and 19.5 percent year over year.