Gildan Activewear Inc . (NYSE:GIL) stock soared to a 52-week high, reaching a price level of $42.02, marking a significant milestone for the company. This peak reflects a robust 1-year change with an impressive 36.51% increase, signaling strong investor confidence and a positive market outlook for the apparel manufacturer. The company's performance over the past year has evidently resonated well with investors, as Gildan Activewear continues to expand its market presence and capitalize on strategic growth opportunities.
In other recent news, Gildan Activewear Inc. has reported a 3% increase in Q2 2024 sales, bringing the total to $862 million. This growth was primarily driven by a robust performance in their Activewear segment, despite a 16% decline in their Hosiery and Underwear category due to the phasing out of the Under Armour (NYSE:UA) business. The company's gross margin improved to 30.4% and a new share repurchase program was announced.
Looking forward, Gildan anticipates flat to low-single-digit revenue growth and an adjusted operating margin slightly above their 18% to 20% target range for the full year. From 2025 to 2027, the company expects mid-single-digit net sales growth and mid-teen adjusted diluted EPS growth.
These recent developments reflect Gildan's strategic focus on enhancing operational efficiency and shareholder value. Despite challenges such as factory relocation impacting the fulfillment of some fleece product orders, the company remains confident in its growth strategy and competitive positioning in the market.
InvestingPro Insights
Gildan Activewear Inc. (GIL) has not only hit a 52-week high but also showcases a strong financial performance with a market capitalization of $6.83 billion. The company's P/E ratio stands at 17.11, reflecting investor sentiment on its earnings capability. Additionally, Gildan's commitment to returning value to shareholders is evident through its dividend policy, having raised its dividend for 3 consecutive years and maintaining dividend payments for 14 consecutive years. The stock's price stability is underscored by its low price volatility, while the company's liquid assets exceed its short-term obligations, indicating a solid liquidity position.
Investors may also take note of the company's recent price performance, with a 24.86% return over the last three months, contributing to a year-to-date price total return of 27.63%. This robust short-term growth complements the company's longer-term performance, with a 39.05% return over the past year. Moreover, with analysts predicting profitability for the current year and a track record of profitability over the last twelve months, the outlook for Gildan Activewear remains positive.
For those seeking more in-depth analysis and additional insights, there are numerous InvestingPro Tips available, including information on the company's stock price movements and debt levels. To explore these further, interested readers can visit InvestingPro for comprehensive investment research and data.
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