Gildan Activewear Inc. announced today the unveiling of key strategic priorities by its President and CEO, Vince Tyra. The company concurrently reconfirmed its full-year 2024 guidance and provided preliminary Q1 revenue figures. Furthermore, Gildan intends to host an Investor Day in the Fall of 2024 to present a comprehensive strategic plan.
Reflecting on his initial 90 days in office, Vince Tyra expressed enthusiasm about leading Gildan during this crucial period. He emphasized the importance of sharing his strategic priorities, which aim to leverage the company's strengths and enhance value creation for all stakeholders. These priorities, informed by shareholder feedback, focus on sustainably growing Gildan and capitalizing on its strong fundamentals to unlock further potential.
Underpinning Gildan's future is the Gildan Sustainable Growth (GSG) strategy, built on three pillars: Growth, Innovation, and ESG. Tyra outlined five key strategic priorities:
• Execute supply chain initiatives to maintain availability, cost leadership, and industry-leading margins.
• Leverage Gildan's brands and develop commercial capabilities to accelerate growth and solidify market position.
• Strengthen relationships with retail partners to enhance Gildan's position as the supplier of choice.
• Expand focus on select international markets to complement North American strength and drive growth.
• Foster world-class talent and leadership to ensure long-term resilience.
Medium-term targets set by Gildan indicate confidence in achieving market share gains, opportunities in targeted markets, and key financial metrics over the 2025-2028 period. These targets include mid-single digits net sales growth, annual adjusted operating margin between 18 per cent and 21 per cent, and high-single to low double-digit adjusted diluted EPS growth.
In terms of the 2024 outlook, Gildan reaffirmed its guidance, including flat to low-single digits revenue growth, adjusted operating margin slightly above the high end of the target range, and adjusted diluted EPS between $2.92 and $3.07. Preliminary Q1 2024 revenue is expected to be approximately $695 million, down about 1 per cent year over year.
These projections are contingent on market conditions and geopolitical environments, with Gildan acknowledging significant risks and uncertainties. However, the company remains committed to its strategic objectives and aims to deliver strong shareholder returns through prudent capital allocation and value-accretive initiatives.
