Gildan Activewear Reports Record Earnings and Dividend Hike

Gildan Activewear ( (GIL) ) has released its Q4 earnings. Here is a breakdown of the information Gildan Activewear presented to its investors.

Gildan Activewear Inc., a prominent player in the textile manufacturing sector, is recognized for its comprehensive range of activewear, socks, and underwear, leveraging a vertically integrated production model to maintain a competitive advantage.

In its recent earnings report, Gildan announced a record fourth-quarter revenue of $822 million, marking a 5% increase from the previous year, alongside a noteworthy adjusted diluted EPS of $0.83, reflecting a substantial 11% growth. The company also declared a 10% dividend increase for 2025, underscoring its ongoing commitment to shareholder returns.

Key financial highlights include a robust operating margin of 21.8%, with an adjusted operating margin of 21.3%. Gildan reported a gross profit of $253 million for the quarter, benefiting from reduced raw material costs, while international sales saw a significant 20% increase. However, the hosiery and underwear category faced a downturn largely due to the phase-out of a partnership with Under Armour, though it showed growth when excluding this impact.

For the full year, Gildan’s net sales reached $3.271 billion, up by 2% compared to the previous year, aligning with their strategic objectives. The company successfully returned $889 million to shareholders through dividends and share repurchases, maintaining a strong financial position with a leverage ratio of 1.9 times net debt to adjusted EBITDA.

Looking forward, Gildan remains optimistic about continued growth, projecting mid-single-digit revenue growth and a significant increase in adjusted diluted EPS for 2025. The company’s strategic focus on sustainability and innovation is expected to drive further market share gains and enhance its competitive edge in the textile industry.