Gildan Activewear Inc.: What Is The Expected Bottom-line Impact Of Cost Input and Manufacturing Optimization?

Gildan Activewear showcased a mixed performance in the first quarter of 2024, reflecting a combination of strengths in certain product categories and challenges in others, alongside strategic refinements under new leadership. The company reported a slight decline in total revenue, with sales of $696 million, down 1% year-on-year, in line with forecast expectations. This top-line result was primarily due to an offset between a 1% growth in Activewear and a 10% decrease in the hosiery and underwear segment. The decline in the latter was somewhat anticipated, attributable to ongoing broad market weaknesses and the phase-out of the Under Armour business following the expiry of their license.