Gildan Activewear (NYSE:GIL) (TSE:GIL) shares are in focus today after the apparel manufacturer delivered robust results for the fourth quarter. Gildan’s fourth-quarter top line rose by 9% year-over-year to $783 million. The figure outpaced estimates by $28.1 million. Similarly, EPS of $0.75 came in ahead of expectations by $0.02. Moreover, GIL has hiked its dividend by nearly 10%.
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During the quarter, Activewear sales rose by 8% on the back of higher volumes. Additionally, new program introductions and increased volumes led to an 11% increase in Hosiery and Underwear sales. However, the company’s International sales declined by 24% amid persistent macroeconomic challenges.
For Fiscal Year 2024, the company expects flat to low-single-digit revenue growth. Adjusted EPS for the year is anticipated in the range of $2.92 to $3.07. This signals an uptick of 13.5% to 19.5% in the company’s bottom line. However, Gildan expects net sales for the upcoming quarter to decline in the low single digits due to lower levels of customer replenishment. Separately, Gildan has increased its quarterly dividend by 10% to $0.205 per share. The GIL dividend is payable on April 8 to investors of record on March 13.
What Is the Price Target for GIL?
Despite tough macro conditions, Gildan’s share price has advanced by nearly 17% over the past six months. Overall, the Street has a Moderate Buy consensus rating on Gildan, and the average GIL price target of 38.46 points to a 13.5% potential upside in the stock. Analysts’ views on the stock could see revisions after its Q4 results today.
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