Gildan Activewear (GIL) GlobeNewswire·2025-02-19 11:47Core Insights - Gildan Activewear Inc. reported record revenue of 822 million, a 5% increase from the previous year, with activewear sales up 11% to 253 million, representing 30.8% of sales, an improvement from 30.2% in the prior year [4][30]. - SG&A expenses decreased to 88 million year over year, reflecting a reduction in costs related to proxy contests and leadership changes [5][30]. - Operating income for the fourth quarter was 175 million, up 160 basis points from the prior year [6][30]. - The company generated cash flow from operations of 501 million for the full year, with free cash flow of 389 million for the full year [7][30]. Market Dynamics - International sales increased by 20% year over year, driven by higher sell-through in certain markets and inventory replenishment by distributors [3][10]. - The Hosiery and underwear category saw a 23% decline in net sales, primarily due to the phase-out of the Under Armour business, although excluding this impact, sales were up in high single digits [3][10]. Strategic Initiatives - The company continues to focus on its Gildan Sustainable Growth (GSG) strategy, enhancing its competitive advantage as a low-cost, large-scale, vertically integrated sustainable manufacturer [2][17]. - Gildan aims for mid-single digit net sales growth and mid-teen adjusted diluted EPS growth over the next three years [17][21]. Shareholder Returns - The company returned 889 million for the full year through dividends and share repurchases [7][15]. - A 10% increase in the quarterly dividend was announced, with a cash dividend of $0.226 per share payable on April 7, 2025 [23][21]. Leadership Changes - Gildan announced executive leadership changes, including the appointment of Chuck Ward as EVP and COO effective March 1, 2025, and Luca Barile as CFO [20][28].