Gildan Activewear (TX:GIL)(NYSE:GIL) is a Montreal-based company that manufactures and sells various
apparel products in North America and around the world. It has benefited from strong activewear
demand and price inflation that has given a boost to retailers. Shares of this TSX stock have plunged 36%
in 2022 as of mid-afternoon trading on July 13. That pushed the stock into negative territory in the year-
over-year period.
Investors can expect to see the company’s second quarter 2022 results in early August. In the first
quarter of 2022, Gildan delivered record first quarter sales of $775 million – up 31% from the previous
year. Adjusted diluted earnings per share (EPS) climbed 58% year-over-year to $0.76.
On the business front, Gildan saw its sales bolstered by volume growth and an increase in net selling
price. It was also helped by product mix. It posted adjusted gross profit growth of 30% to $239 million.
Looking ahead, Gildan said that it anticipates a slower sales environment in the face of economic
uncertainty. Still, overall demand for activewear has remained strong at the time of this earnings
release.
Shares of Gildan Activewear currently possess a very favourable price-to-earnings ratio of 7.8. It is
trading in much stronger value territory compared to its industry peers. Gildan currently offers a
quarterly dividend of $0.169 per share. That represents a 2.5% yield.
