Gildan Activewear’s net sales for the second quarter were 862 million dollars, up 3 percent, at the higher end of previously provided guidance of flat to low single-digit growth.

Net sales for the first half period were 1,558 million dollars, up 1 percent versus the same period last year.

"I am proud of the Gildan team's ongoing dedication, delivering a solid top line performance in the second quarter with strong adjusted operating margin and double-digit adjusted diluted EPS growth. I am excited to be back leading the company as we continue to focus on our Gildan Sustainable Growth Strategy (GSG) and celebrate a significant milestone with our company's 40th anniversary this year," said Glenn Chamandy, Gildan’s president and CEO.

Gildan sets targets for the 2025 to 2027 period

For 2024, Gildan expects revenue growth to remain flat to up low-single digits.

Adjusted operating margin is forecasted to be slightly above the high end of 18 percent to 20 percent target range and adjusted diluted EPS in the range of 2.92 dollars to 3.07 dollars, up between 13.5 percent and 18.5 percent year over year.

Commenting on the three-year outlook for the 2025 to 2027 period, the company said, compound annual growth rate is expected to be in the mid-single digit range, annual adjusted operating margin to further improve over the three-year period as compared to 2024.

Adjusted diluted EPS growth at a compound annual growth rate is expected in the mid-teen range.

The company’s board of directors has declared a cash dividend of 0.205 cents per share, payable on September 16, 2024 to shareholders of record as of August 22, 2024.

Highlights of Gildan’s Q2 and H1 results

The company’s activewear sales of 737 million dollars, were up 6 percent. International sales increased by 7 percent, as POS trends rebounded across all regions. First half In activewear sales of 1,329 million dollars, were up 49 million dollars or 4 percent with international sales of 123 million dollars, up 4 percent.

In the Hosiery and underwear category, sales were down 16 percent versus the prior year, due to the phase out of the Under Armour business, unfavourable mix and continued broader market weakness in innerwear. Hosiery and underwear category sales for the first six months were down 13 percent.

The company generated gross profit of 262 million dollars or 30.4 percent, representing a 460 basis point improvement. Operating income for the quarter was 141 million dollars or 16.4 percent, while adjusted operating income was 196 million dollars or 22.7 percent of net sales.

For the first six month period, the company generated gross profit of 473 million dollars, up 69 million dollars versus the prior year, gross margin of 30.4 percent was up by 420 basis points, operating income was 246 million dollars or 15.8 percent of net sales, and adjusted operating income was 321 million dollars or 20.6 percent of net sales, up 80 million dollars or 500 basis points compared to the prior year.