The following is a summary of the Gildan Activewear's (GIL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Gildan Activewear reported Q1 sales of $696 million, a slight 1% decline from the previous year, attributed to lower net selling prices and an unfavorable product mix.
Despite this slight dip in sales, the company experienced a significant double-digit increase in adjusted earnings growth for the quarter.
Q1 operating margin stayed strong, showing an adjusted gross margin of 30.3%.
The company significantly improved its free cash flow, using only $71 million in the quarter as opposed to $202 million in the same period last year.
Gildan maintained a net debt of $1.1 billion, keeping a net debt leverage ratio of 1.6 times, in line with target levels.
Business Progress:
Gildan's operations saw continued market momentum for ring-spun and fleece products, offset somewhat by decreased hosiery and underwear demand.
The manufacturing complex in Bangladesh is on track, expected to reach 75% capacity by the end of 2024.
The company expects continued strength in key product categories, in particular, fleece and ring-spun t-shirts.
Leadership remains focused on supply chain excellence, brand enhancement, commercial capacity growth, international market expansion, and staff development.
Expectations are positive for growth opportunities as new retail programs are implemented throughout the year.
Despite broader market weakness in underwear, the company is increasing its share in international markets. Gildan is also strategizing with competitive pricing to gain additional international market shares.
Gildan has successfully launched new product styles contributing to continued business innovation.
More details: Gildan Activewear IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.