Gildan Stock Trades Near 52-Week High: Can the Rally Continue?

Core Viewpoint - Gildan Activewear Inc. (GIL) is experiencing significant growth, nearing its 52-week high, driven by market share expansion, strong sales growth, and operational efficiency [1][2]. Financial Performance - Gildan's fourth-quarter 2024 earnings report exceeded market expectations, showcasing robust revenue growth and margin expansion [2][8]. - Adjusted EPS increased by 10.7% year over year, while revenues grew by 5% [8]. - International sales surged by 20% for the second consecutive quarter, driven by strong demand in Europe [8]. - The Activewear segment grew by 11%, benefiting from increased sales volumes and innovative product launches [9]. - Gross margin improved to 30.8%, reflecting a 60-basis-point increase due to lower raw material costs [10]. Strategic Initiatives - Gildan's Sustainable Growth Strategy (GSG) has been pivotal in accelerating growth and enhancing consumer engagement [3][10]. - The company has optimized its global manufacturing footprint and captured market share in key growth categories [10]. - A new manufacturing complex in Bangladesh is fully operational, enhancing cost efficiency and global flexibility [11]. Future Outlook - For 2025, net sales growth is expected to be in the mid-single digits, with adjusted operating margin projected to improve by 50 basis points [12]. - Adjusted earnings are anticipated to be between $3.38 and$3.58 per share, indicating a year-over-year increase of 13-19% [12]. - Free cash flow is projected to exceed $450 million [12]. - The Zacks Consensus Estimate for EPS has seen upward revisions, indicating expected growth rates of around 4.4% and 5.8% for the current and next fiscal years, respectively [16]. Market Position - Gildan has demonstrated strong market momentum, outperforming the industry and the S&P 500 over the past six months [3][5]. - The stock is trading above its 50-day and 200-day moving averages, indicating robust upward momentum [5].